Social Advertising: Facebook and Social Gaming breaks

Image representing Facebook as depicted in Cru...

Image via CrunchBase

As this is a well timed wholistic review of social advertising, an update too many is already forcing me to change my headlines quickly to catch the right brands and the right market..Facebook’s own ad platform is delivering a 74% higher price in the second quarter over last year taking facebook revenues to nearly 3 times its Year 1 performance including the boost in volumes.

The platform already has four major markets defined in ad metrics measurement across US, UK, Germany and more. Twitter has continued receiving a dichotomy of value disinterest and PE investment overload as Biz and Ev finally put their mind to money after The Obvious corp’s good 5 years. But in the Social advertising category, Facebook is only one category, the other being social gaming , which though hosted on Facebook is likely to get its own brand ecosystem and its own advertising capture.

Social Gaming friendly brands go a lot for In game videos for their brands/ entertainment/movies and NEW PE funding for SupersonicAds ( a Facebook partner) underlines the same. Meanwhile zynga’s small wannnabe Crowdstar has picked up friendships with another video advertiser Jun group Note Page’s Google still does not figure in likely competition on the Social platform

Still worried about your location data – think about funding Foursquare

Image representing Dennis Crowley as depicted ...

Image by DennisCrowley.com via CrunchBase

This is not to ridicule the outcry against Apple and Google tracking their users’ locations (after all, Apple is also adding cloud based video services and the iPhone 5 may be much faster) but the location based services and local services like Groupon and the Google afterthought in the field are set to burn up the competition and create a mass momentum that may in fact propel a new set of social media and brand services that make it impossible to serve the customer without meaningful location data. This latter solution may even be preferred by those in the building that are entrepreneurs and owners of small businesses and trading outfits like food stalls, pizza companies that are really benefiting from the social media visibility of their brands/businesses.  Meanwhile Google is probably depending on location services as it scales Latam business to twice its size this year (just 2-3% of GOOG revenue)

As of now, four square is about to hit the $5 billion valuation soon as the pe funding round envisaged by 4sq looks at pricing it for $500 million.

In the latest sign of the Internet gold rush, location-based service Foursquare Labs Inc. is looking to raise fresh funds at a price that would value the three-year-old start-up at as much as $500 million, people familiar with the matter said.

That valuation could be a stretch for Foursquare, which gives users the ability to get deals or connect with friends by “checking in” wherever they are, but so far pulls in little revenue, the people said.

Chief Executive Dennis Crowley is leading the effort and would like to raise $20 million to $40 million

Read more: http://online.wsj.com/article/SB10001424052748703387904576279380019110022.html#ixzz1KRQ3hKVh

 
Image representing Apple as depicted in CrunchBase

Image via CrunchBase

Another one bites..the paywall | Advantage social

Content on the web, led by business news and analysis suffered another depletion in its ranks with the NY Times hitting the paywall method to generate subscription revenue.  While notable by its unpopularness and its capacity to remove creme de la creme brand loyalists and serious consumers off the sites like WSJ, FT and NYTimes, the method is the only source of revenue anyone in content has come up with. Most like the Kindle and iPad still rely on the free content from across the World Wide Web, as also yours truly to create and  survive our own brand and content. End of the road for serious browsing? Well, most of the magazine content in all 3 cases is available thru Facebook, Twitter and Google so I don’t even now if they should have tried it. We are not trying the paywall as it still looks like a readymade failure to us.

But that does not mean we have found a way to fill the revenue gap, right! And a payment of just $180 million for Adriana Huffington’s effort..I know where this one is headed..

And by the way all known business and daily newspapers in the UK and the US behind a paywall… nary a subscriber run, just the same owner, mostly!! :( And print editions have already lost steam no end.

Image representing iPad as depicted in CrunchBase

Image via CrunchBase

Thestreet.com’s take on the Paywall characterisation of readers and visitors seems most apt

Who is shopping for services in India AND China online?

Basic creditcard / debitcard / smartcard graph...

Image via Wikipedia

You must have noticed thru the two years of Advantage social / Advantage zyaada/ Advantage Brands our use of content systems from the blogverse has been incidental and for rebuilding social capital

Google in fact does realise that and does not list our analyses in blog pages, listing it in the main search results pages..one of the popular ones with both bing and google and Facebook being “Bank results season” others of course almost all business topics with Advantages.us before and after it. Twitterone has survived too. the purpose of the catcalls – to look for the needle in the haystack, the paying proposition…thence the title of this piece. Though bloggyish, this post also will not be a narrative of my travails and tribulations much so because that would at best be a paying blog/blogger and i am trying to harness the social web and the global financial markets with a bigger idea. I am of course catching the most picky topics so many brands have done exactly the things i liked or “asked” them to do and so did many sports rise in the social world so most of my readers do have an instant opportunity to become instant competitors when they come across the right words to launch their inner demon ( the good guy, the achiever) from the millions on offer. But the thornier question is to find the way to profits and greenbacks while creating and preserving profits and brands for you without resorting to the flailing tactics of the hitherto Wall Street champion, WSJ or even the Pearson media property the FT.

The digital media of iPad, Kindle or the web properties of Facebook and Twitter are closer to the utopia but even these cannot claim to have it good in that cradle of human consumption for the next two decades. Oreos and Mac and Cheese might still have a better chance than the digital business models in getting paying customers here in Asia. And there in, lies my pain..

For others who have the funding and the people to back the ideas, they might consider the following as essential requirements in selling services on this side of the sunshine line:

1. A value proposition that does not need anything more than a bare visit to the property to prove its worth. India and China consumers and corporate customers are very much concerned with the intuitive buy in and not reams of proposals and analysis

2. An ability to continuously deliver a paying surprise. Services products especially need to withstand the torment of time and patience and produce winners like clockwork, like your sports stars we’d rather buy a daily Venus Williams than a once an Olympics Agassi..

3. Find a paying club to back you. Individuals and Credit Card customers are unlikely to buy more than groceries or laptops, offices, resident associations and even midwives clubs are more likely to buy subscriptions, consulting services or even taxi services. ( fleets just have to charge lesser than a taxi to sign up, and they’ve hardly done anything else anywhere else in the globe)

The caveats are many and stay the same much because of entrants like the WSJ and Apple:

!. Most global services/ design brands end up looking at a premium/luxury niche alone in these markets – Great for profits but still not likely to tap even 5% of the Consumption club in these countries across the new towns, the boom towns and the always forever towns

2. Do a little soul-searching when you do your staffing..Most global services brands make more than a few costly hiring mistakes when they come in the open door and it is difficult to overturn these later..typically a lot of European brands could attest to such an experience ( and Kraft of course :) )

3. Go on a media binge – it pays. IT’s ok in the caveats, really. That is the lesson early advantage seekers may have learnt already. This market rewards public presence tremendously. Get good PR and make it work continuously. Buy more advertising, just to sell the name for a few first months and then for the services ideally. The caveat – these markets can be very suspicious of a name they have just heard and reward the competitor who irrespective of product or service quality is louder and more lucrative for the distributors

4. last but not the least, despite the lower likelihood of unemployment, the number of free hangers-on who will never write a word for or against you or actually analyse their own pronouncements before making them will stay in the high millions for every trusted advisor you sign here. WOM – what’s that?

Wishing all our readers from around the world a very happy new year for 2010. Esp our readers fom Russia, Eastern Europe, China, India, the Philipines and Australia

Follow

Get every new post delivered to your Inbox.

Join 19,779 other followers