Click below or scroll down for more:
- John Montgomery, COO, GroupM Interaction, North America (WPP Group)
- Kurt Unkel, EVP, General Manager, VivaKi Nerve Center (Publicis Groupe)
- Michael Brunick, VP, Strategic Solutions, MAP (Mediabrands Audience Platform – IPG)
“One can understand why this claim, based on these numbers will be used liberally at this time. ‘Display Impressions’ are a currency that the investment community understands – and if you lead in impressions, a logical conclusion may be that you will earn the most revenue from advertising. Of course, it isn’t as simple as that. For the bulk of their display impressions, Facebook has relatively low yield compared to premium publishers like Yahoo, Turner, New York Times. So their performance would be less impressive if one examines yield, revenue per user and other value based measures.
In terms of revenue potential, Facebook hasn’t scratched the surface yet. The real promise almost certainly does not just lie with display revenue on the desktop.
What Facebook has is 840MM people who engage with the platform enthusiastically and often, and that is where the real promise lies. Facebook does not yet monetize its mobile platform, yet a massive 400MM+ users access Facebook remotely, a huge revenue opportunity in itself. In addition, there are non-advertising revenue sources to capitalize on across the huge user base, like a payment platform (which is still nascent) and revenue shares from games and applications.
If Facebook is overwhelmed by the insatiable demands from the investment machine and are forced to grow at the cost of the user experience (privacy being just one concern) there is little doubt that Mark Zuckerberg will have to face hundreds of millions of irate customers who will feel that the company has sold out to the man. But, if they can stay true to the ideal of ‘making money so we can make a better product’ and grow at a manageable rate, the potential for Facebook to be a Google, rivaling the 800 pound digital media Gorilla, are promising.”
“Facebook creates a ton of ad impressions and is undoubtedly the biggest Display source around at the moment. Much like AOL in the late 90s, Yahoo! in the early part of 2000 or Google (GCN & Search) in the mid 00’s, Facebook has been garnering a great deal of buzz about where the company will go from here. The details may be different but the theme is the same: to be open or not to be open. Each one of these properties went through a phase in which they were not open and did not feel the need to operate like everyone else. Their audiences, insights and operations were pitched as ‘superior’ to the norm and if you wanted to work with them, you had to adhere to their standard vs. the industry’s standard. Some of this thinking was justifiable as, in many cases, these companies had created something altogether new to the industry and true standards did not yet exist to support them. And it was likely fear for the unknown that led to these players to not implement industry standards quickly. However, once the standards were implemented, these properties were able to finally grow to their true potential. As we know, history repeats itself, so we have a pretty good idea about where this is going. Remember ‘rainman’ inventory on AOL? Or no 3rd party ad-serving on GCN (Google’s Content Network)?
What I’m most curious about is whether or not Facebook can take a lesson from the past and embrace standards sooner so they can ‘jump the curve’ vs. fall victim to it.”
“The news of Facebook’s position as the largest source of display advertising impressions comes at a pivotal time for Facebook, and for display advertising in general. As display – and as programmatic buying across all channels, including video, mobile and social – becomes a larger component of most advertisers’ marketing activity, the value that is generated by that activity becomes increasingly crucial to help driving the desired business outcomes for our clients.
A key component to generating that positive impact will depend on the quality of the audience you can deliver through those impressions. Scale – as sheer volume – is only one variable in the equation; quality is another, as is environment. However, the combination of multiple attributes together: quality audience, at scale, delivered in a relevant way and in an engaging environment – that is the recipe for success.
In discussing this with my colleague Clay McDaniel, who runs our social marketing platform Spring Creek Group, he said, ‘We already knew that Facebook had become one of the most powerful platforms for brands to provide interactive applications and marketing content to customers, and now they have become one of the most important paid media networks as well.’ And that seems to be the key here – as Facebook has proven to have that valuable, engaged audience, it is now clear that we have the ability to harness that audience in truly meaningful ways for our clients.”
By John Ebbert
More AdExchanger “Industry Reactions”…
- Can It Be Done? Local, Direct, Automated Ads
- The Impact Of No More Third-Party Cookie Targeting In Firefox
- House Ads – What Are They Good For?
- What is "Premium"?
- When Is A Startup No Longer A Startup?
- Why Is Procurement Necessary?
- Agency CEOs: 2013 Planning Is About Mobile Integration
- Can You Build a Brand in Programmatic Media?
- How Do Native Advertising and Real-Time Bidding Meet?
- Why Target The Tablet?
- The Publisher Impact Of Facebook Exchange And Ad Network
- Agencies Upbeat on Tying Facebook to Cross-Channel Ads
- Are Advertisers Living the Dream of Unified Marketing and IT?
- What Next For Yahoo?
- What Counts as 'Scale' in Hyperlocal? Mobile Ad Players Weigh In
- Facebook Buys Instagram – What’s In It For Ads?
- Are Ad Servers Specifically For Publishers Or Advertisers Still Necessary?
- How Will The iPad 3 Impact Audience Buying Available Through The iPad?
- Will The Merger Of DDS And MediaBank Into Mediaocean Benefit Media Buying?
- Will SSPs and Ad Networks Sell Publisher Inventory Through DoubleClick Ad Exchange?
- The Industry 'Take' On SAS Acquiring aiMatch
- Industry Impressions Of Facebook Display Advertising
- What Are The Hurdles In Cross-Digital, Audience Buying?
- When Is A Mobile, Private Exchange Relevant To A Marketer's Needs?
- Your Ad Server, My Ad Server: Trends With Discrepancies Today
- The Opportunities Ahead For New Yahoo! CEO Scott Thompson – Industry Reaction
- Predictions 2012
- Industry Reaction: Adobe Acquires Efficient Frontier
- Yahoo! Requiring RMX Seats For DSP Advertisers
- Yahoo!, Aol And Microsoft Pool Their Premium, Non-Guaranteed Display Inventory
- Whats The Biggest Challenge With Platform Buying In Digital Today?
- Industry Reaction: Yahoo! Acquires interclick For $270 Million
- How Important Is -First Look- At Inventory?
- Where Does The Tablet Fit In The Marketer Media Plan?
- MediaBank-DDS Merger Industry Reaction: Questions Remain About MediaOcean
- Is An Online GRP Needed For Online Video Advertising?
- What Should Yahoo Do Next?
- What Solutions Are Still Needed For The Premium, Digital Publisher of Today?
- How Do Search Marketers Overcome The Creative Challenge In Graphical, Display Advertising?
- What Is The Difference Between A Social Display Impression And A Regular Display Impression?
- Is Audience Buying Possible In Mobile Advertising?
- What Are The Key Metrics For Brand Awareness Campaigns In An Automated Buying Environment?
- What Is The Biggest Challenge With The Demand-Side Platform Model?