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| Facebook Inc. CEO Mark Zuckerberg is escorted by security guards as he departs New York City's Sheraton Hotel |
Facebook Is Bringing Ads to Mobile Apps
Sources close to the matter say Facebook has already discussed proposals with advertising agencies, according to the Financial Times. Facebook began runningsponsored stories in December 2011. Featured stories will appear in the mobile news feed — similar to Twitter’s promoted tweets — mixed in with posts from your friends.
In Facebook’s paperwork for its Initial Public Offering, filed Feb. 1, the company pointed to mobile as a potential revenue source — and warned that the lack of mobile revenue was one of the things that could harm it. Nearly half of Facebook’s 845 million users access the site via mobile device.
One source told FT Facebook would incentivize advertisers to link within Facebook, rather than directing users off-site.
Facebook will hold an event for marketers in New York Feb. 29, so we can expect announcements of new ways they can use the social network. Facebook is yet to unveil Timeline brand pages, although that move is anticipated in coming weeks as Facebook rolls out Timeline for all users.
Will ads on Facebook mobile deter you from using the service? Is a smartphone screen too small for promoted stories? Let us know what you think in the comments.
Additional Facebook IPO Coverage
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- Zuckerberg to Potential Shareholders: Facebook Is on a Social Mission
- Facebook IPO Filing Flings Open the Social Network Kimono
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Related articles
- Will Facebook Mobile Ads be Here by March? [Facebook] (gizmodo.com)
- Facebook looks to mobile devices for revenue (ibnlive.in.com)
- Facebook Is Bringing Ads to Mobile Apps [REPORT] (mashable.com)
- Report: Facebook launching mobile ad platform next month (fiercemobilecontent.com)
- Report: Facebook launching mobile ad platform next month (nfcdata.com)
- Get ready, Facebook Ads ads are going mobile (browsermedia.co.uk)
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Best in Blogs: Facebook IPO Shares and Overshares; CyberMonday Goes Mega
Good Morning Silicon Valley compiles some "eye popping" numbers about the rumored IPO and its possible record-nearing value. The stock-market experts at Business Insider wonder if a Facebook IPO will mean "the end of innovation," as some set-for-life FB employees may cash out and leave, or stop trying as hard to think up cool stuff like Timeline and Beacon. But All Facebook says don't mark your calendars just yet, suggesting that we should we forget about the Facebook IPO rumor until game maker Zynga has its own public offering: "If Zynga's not rushing forward with its IPO, why should Facebook make any concrete plans? Facebook's share price has been going down in the last series of private market auctions, so issuing any additional stock would likely add additional downward pressure to that pricing." Finally, Mashable presents a kind of FAQ to the IPO including the downsides to the company in going public: "There are a few, mostly the loss of privacy...Facebook will now have to report quarterly and annual earnings as well as more juicy information, like the amount of shares that executives in the company hold." Loss of privacy? Get used to it! (We did.)
The Federal Trade Commission put in its teeth and reached a settlement with FB that will require "audits of Facebook's privacy program for the next 20 years, and requires the company to obtain express affirmative consent from users before altering their privacy preferences in the future," reports Clickz. What did the company do exactly? "Facebook shared user IDs with advertisers, allowing them to tie Facebook data to information gleaned about users on other sites." ReadWriteWeb itemizes eight separate privacy violations cited by the FTC, eight ways "Facebook screwed with everyone's privacy." Says Gizmodo: "Apperantly, the word 'private' meant 'private until we make a few changes and make sure the whole world see your vacation photos'." (Note: at Gizmodo, the word "apperantly" means "apparently.") At the Daily Beast, Dan Lyons puts a bowtie on it all with the explanation Mark Zuckerberg might have delivered to users "if he dared to be brutally honest." A highlight: "The truth is, we have no interest in protecting your privacy, and if you still believe that we do, then you are stupider than we thought, and believe me, we already thought you were pretty stupid. Think about it. The only way our business works is if we can track what you do and sell that information to advertisers. Did you honestly not realize that?"
Meanwhile, more traditional consumer businesses were battling for bucks in the wake of Black Friday, Cyber Monday, and the whole Thanks-buying holiday season. It seems the "Death of Cyber Monday" had been greatly exaggerated. "This year's Cyber Monday was the biggest day in online spending ever, with $1.25 billion spent at online retailers, up 22 percent from a year ago," reports VentureBeat. Wow! Adds O'Reilly Radar: "If online sales growth was healthy, the growth in mobile sales was practically supernatural. PayPal Mobile reported a 552% increase in global mobile payment volume on Cyber Monday 2011 compared to the same day a year earlier. " SearchEngineWatch tracks other CyMo data, including Bing's report that the top consumer electronics searches were for LCD TVs, GPS, and home theaters and that another search term that spiked on Cyber Monday was "pepper sprayed shoppers." "Part of the reason these big sale days work is because they're special. 24 hours of the lowest prices and best deals," says Marketing Pilgrim. "Yet, this [Tuesday] morning, I woke up to emails from two retailers saying they were extending their sales for another 24 hours. So now it's Cyber Tuesday?" It's probably inevitable. A few are choosing to sit out the whole shopping madness. Statistics are harder to track for this year's Buy Nothing Day.
Related articles
- Facebook's Rumored $100 Billion IPO May Be Announced Between April, June 2012 (huffingtonpost.com)
- Web Reactions to Facebook IPO Story (blogs.wsj.com)
- Facebook Is Gearing Up Its Business Ahead Of The IPO (businessinsider.com)
- Facebook Prioritizes Being 'Blue Chip' Before IPO [VIDEO] (mashable.com)
- Facebook IPO coming next spring? (news.cnet.com)
Zynga Looks to Raise $1 Billion From IPO
Online gaming company Zynga filed IPO documents with the Securities & Exchange Commission Friday, pricing its shares between $8.50 and $10.
If successful, the IPO will bring Zynga between $850 million and $1.15 billion at a maximum $7 billion valuation.
For comparison, the market cap of one of the largest gaming companies in the world, Activision Blizzard, is $14.2 billion.
Famous for its popular social games such as FarmVille and CityVille, Zynga originally prepared to file for an IPO several months earlier, but the IPO got delayed due to volatility on the stock market.
The $7 billion valuation is significantly lower than predicted; in May, Zynga was trading in the private markets at a valuation of around $10 billion.
Considering the mixed feelings about Internet company IPOs in the investment community, the recalibration may not be all that surprising. On one hand, Facebook’s initial public offering, which might happen in 2012, could end up as one of the largest IPOs in history, bringing back nice memories of Google’s $23 billion IPO in 2004. On the other, Groupon’s shares sunk after the company’s IPO in November, though Groupon shares did bounce back a bit after the end of its quiet period.
Zynga does have a few things going for it. It plans to sell quite a large stake of the company: 100 million shares (14.3% of its total), which might help reduce volatility. Its valuation is lower than expected, and the company is profitable, with earnings of $30.7 million for the first three quarters of 2011.
If all goes as planned, Zynga will hit Nasdaq under the ticker name ZNGA in mid-December.
What do you think? Will Zynga’s IPO be a success or a bust? Would you buy Zynga’s shares?
[via New York Times]
Zynga's New Headquarters
There is a Zynga RV at the entrance.
Related articles
- Zynga Looks to Raise $1 Billion From IPO (mashable.com)
- Zynga hopes to raise about $1 billion in IPO (sfgate.com)
- Zynga To Raise $1 Billion From IPO (paidcontent.org)
- Zynga tests IPO waters with $7 billion target (money.cnn.com)
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