Display Advertising Mentioned 8 Times In Facebook S-1; Google Talks Ad Exchange For Euro Publishers

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

IPO Opens Facebook Kimono

To the media’s relief, Facebook has finally filed its regulatory papers in preparation for an Initial Public Offering and it appears that just about the entire advertising market is in the company’s crosshairs. From the S-1 filing: “According to an industry source, total worldwide advertising spending in 2010 was $588 billion. Our addressable market opportunity includes portions of many existing advertising markets, including the traditional offline branded advertising, online display advertising, online performance-based advertising, and mobile advertising markets.” So of the $588 billion 2010 global ad nut, Facebook captured $3.7 billion (actually 85% of that is ads) and $1 billion in income -albeit in 2011. For reference, Google made 10x the revs with $37 billion in revenue and $9 billion in net income in 2011. Do I hear $50 billion in Facebook revenues in 2015? Where’d I get that number? The seat of my data-driven pants! The big blue machine is about to get unleashed and pending how much data they let advertisers use, it could get much bigger, very quickly. Read Facebook’s S-1 statement. All Things D’s Tricia Duryee notes that Zynga is 12% of revenue for Facebook. Read it. Will Zynga get acquired by Facebook soon? Duryee counts 24 Zynga mentions in the S-1. Meanwhile, AdExchanger notes 8 mentions for un-sexy “display advertising.” The S-1 states, “Display advertisers run impression-based campaigns on Facebook in order to reach our large user base and because of the amount of time that users spend with us.” Technically, they’re usually click-based, CPC campaigns. But every CPC has a CPM metric standing close-by. More on the S-1 deets from Bloomberg.

Search Privacy Policy

David Strader looks at the recent Google privacy policy changes on the iCrossing blog. He writes, “Although the policy change means Google will produce more relevant ads you see on Gmail and other Google products, the impact on natural search is still yet to be seen. I believe a lot of this data collection for more relevant search results is already being done and that this announcement is merely Google finally telling its users what Google have been doing for a while now. In other words, Google is making its privacy policy easier for users to read and understand.” Read more. Meanwhile, Danny Sullivan says that Microsoft is taking Google to task in newspaper advertisements questioning the recent privacy policy changes. Read it.

Programmatic Challenges

VivaKi Nerve Center CEO Curt Hecht discusses challenges with programmatic buying with Digiday’s Brian Morrisey. Hecht says, “Believe it or not, one big challenge is simply getting people to accept it. The pipelines are in place, and technology features are getting more refined to enable customized bidding and buying. But programmatic buying is a dramatic shift that challenges long established business practices.” Read more.

Targeting Euro Publishers

Google Product Management Director Scott Spencer offers European publishers some tasty revenue tidbits about the DoubleClick Ad Exchange in a new whitepaper targeting the Eurozone. Quoting stats, Spencer claims that the Ad Exchange “revenue is 73% higher” than what “direct sales teams, other
networks and backfills” could have produced. Download it (PDF). And, read the DFP blog post. This whitepaper compares to last year’s U.S.-centric edition (see the interview) on the Ad Exchange where former Googler, past Facebooker and current Googler Lexi Reese discussed a 188% revenue lift compared to what “fixed upfront pre-negotiated sales of non-guaranteed inventory” could have produced. Hmmm.. 73% versus 188%. Assuming the gobbledygook comparison group from last year is similar to the new lexicon used for this year’s European group, is there better lift in the U.S.? Or are prices for exchange-based media higher in Europe to begin with? Or, is this a mountain out of a molehill? You decide.

More Retargeting Love

Retargeting firm AdRoll has released its very own, private company “earnings report” as it says clients include the Fortune 500 and not just the long-tail and mid-tail markets. In addition, year-over-year, Adroll claims things have been looking good as display retargeting continues to say to clients: “Why wouldn’t you?” AdRoll revenue increased 414% in 2011 – and so had its impressions served, says the company. Read more.

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Daily Roundup

Daily News Roundup

Social Media May Be Hazardous To Your Health; The Google API You Hope For

The Paradox Of Targeting

The Trade Desk’s Alex Schneider takes the controls on the Acquisio blog and offers some ad targeting tips and the use of geography – or geos. “So the further a user is from the core market area the more targeted the media buy needs to be. The closer a user is the core market area, the greater the chances of them converting, thus we can afford to buy cheaper less targeted inventory.” Read about the paradox. With an example or two, it makes sense.

GRP Limits

In an interview on The Makegood, creative analytics company Moat is featured and its CEO Jonah Goodhart dips his toe into the discussion (1, 2, 3)around GRPs and viewable impression metrics. He says, “This solution though is a partial one as GRP only measures whether people could have seen an ad– but not whether they actually saw it or better yet paid attention to it. That seems like a fine distinction, but the difference between “could have” and “did” is quite significant in digital.” Read it.

The App Of Your Eye

Like a proud papa, product chief Ari Paparo announces some new apps in the AppNexus app store as the company seeks to enable partners who bring tools to their real-time ad platform. Facebook is part of the mix – kinda – as partner “Glow Digital’s Glow Machine App integrates Facebook media buys into the AppNexus Console giving common customers a single view of cross-channel activity.” Read it and see more apps.

Privacy