Faceboook Pushes for Ad Transparency - We All Should
Posted on December 31, 2011 by Mediabids
This story from the Financial Times on Facebook's effort to ensure that agencies do not excessively mark up the cost of their advertising outlines a significant problem, not only with online advertising but also in print. Too often, agencies take a disproportional percentage of discounts given by publications - failing to pass along that savings to customers. It is a short-sited tactic, creating a scenario where overcharged advertisers are less likely to find their advertising expenditures effective. Which is why at Mediabids.com we mark up only 8.5%, no matter how great the cost savings realized, a far cry from the 30%-40% routinely charged by agencies selling "discounted" ad space.
Facebook pushes for ad revenue transparency
Facebook is pushing advertising sales agencies to be more transparent about how they charge for their services, in an effort to protect companies who market on the social network.
Facebook believes that by improving transparency companies will have a clearer idea of what proportion of the money they give to agencies goes directly on ad spending, rather than on service fees.
Facebook advertising is still so new for companies, she said, that most of them were unable to negotiate effectively with the agencies representing them.
“The brands aren’t at a point where they’re smart enough to know the difference between the good guys and the hucksters.”
Facebook has been trying to bring more order to the social advertising market since bolstering its roster of advertising sales partners in August. Stepping up enforcement of its transparency rules could boost the social network’s revenues ahead of an initial public offering.
Grady Burnett, Facebook’s vice-president of global marketing, said: “The primary thing we care about is making sure people understand when they’re paying for media on Facebook and when they’re paying for something else.”
The different ways agencies charge has made it harder for brand-owners to assess the effectiveness of their social media advertising, according to critics.
For example, some agencies charge a direct percentage of the ad purchase, while others charge a fee for every time a user clicks “Like” on a fan page. Because a “Like” is such a new advertising metric with no settled market value, a company could charge a flat fee of $2 per Like, then spend $1 on a Facebook ad to drive the traffic that will generate the Like, keeping a hefty 50 per cent margin for itself.
Advertisers do not like these sales agencies “making loads of margin”, said Simon Mansell, chief executive of TBG Digital, one of Facebook’s ad sales partners, which charges clients a 15 per cent cut of ad spending on Facebook.
Advertisers would rather see more dollars go to Facebook, and so would Facebook, he said. Facebook’s transparency policy could facilitate that.
The rules require agencies to share their margins with clients up front, and to store Facebook account information for each client separately, so Facebook can see how much each company spends on Facebook ads.
“You have to tell Facebook your spread,” Mr Mansell said.
Facebook has been pushing agencies to comply with the policies in the last several months, according to agencies, after it began accepting applications from more of them to become advertising sales partners. So far, it has approved 25.
Tagged facebook discounts print mediabids magazine mediabids.com rates transparency media newspapers
Min Online: Print has a Pulse
Posted on February 20, 2011 by Mediabids
‘Print Has a Pulse’: Buyers Taking a Second Look
Spot TV remains the most attractive venue for buyers (44%) in this survey, followed by Internet and Digital channels (21%) and spot radio (16%).
On the digital side there is surprisingly strong interest in display (80%), followed by social media (61%) and search (60%). For all of the hype around mobile, however, only 29% showed special interest. Within mobile the iPhone attracts the most interest (80%), and Blackberry (51%) is outpacing Android (45.8%). The iPad attracts interest from 31% of advertisers, up from 22% in the previous quarter. Overall, digital media actually suffered its first drop in enthusiasm. According to STRATA CEO/president John Shelton, “We see that the focus on digital has fallen off a bit. While still hot, it is used more in a solid media mix than more dollars heading its way.”
The “emerging platforms” are being met with some skepticism. STRATA found that 90% of its clients are showing no interest in the iPhone iAd, Google TV or Apple TV. Location-based advertising is not even in about 70% of plans for 2011, and most interest is going to Facebook Places, followed by Foursquare.
STRATA, a Comcast subsidiary, sells media planning and buying software.
Magazines Will Start Selling Subscriptions on Facebook, but will people buy?
Posted on May 13, 2010 by Mediabids
Synapse will begin selling magazine subscriptions for magazines through Facebook and associated article links in Facebooks' news feed. Good idea but will people pay for a subscription when they can read the articles they are most interested in at no cost via Facebook already? Until publications restrict access to content, seems likely efforts like this will fall flat.
Magazines to Sell Subscriptions Within Facebook's News Feed
NEW YORK (AdAge.com) -- The magazine business may soon have a way to do more with Facebook than engage fans and promote its brands. A mockup of an expanded article running in Facebook's news feed, using InStyle as an example. A mockup of an expanded article running in Facebook's news feed, using InStyle as an example. Synapse, a Time Inc. division that sells subscriptions for many publishers, is collaborating with Alvenda, a company that builds e-commerce applications, to introduce a system letting Facebook users buy print magazine subscriptions without leaving the site or even the Facebook news feed. The system, which Alvenda expects to make live in July or August, will also allow Facebook users to expand those blurbs of magazine content that are now common in the news feed into full articles, complete with advertising -- again without leaving the news feed, much less Facebook itself.
Full story here
Tagged news revenue magazines advertising mediabids feed bids media subscriptions synapse facebook
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