Posts tagged: advertising

Show me the money

By Tai, September 26, 2009 5:05 pm

Facebook just formed alliance with Nielsen, in which the social network will offer its 300 million-user platform to Nielsen. The implications of this may include:

  • Nielsen will have access to all Facebook users information. Curiously, is Nielsen the second after Microsoft?
  • Facebook may restructure and improve their data mining process
  • More market research utilities on Facebook can be expected
  • Facebook has a source of income for three years
  • Facebook accelerating their income from advertising

Show me the money T-shirt

What’s in there for me

As a user, I would expect more relevant ads not only on Facebook, but on other instances where Nielsen reaches. It’s always useful to remember Nielsen now has my full profile and social graph, and yours too.

As a freelance analyst/consultant having services to provide, I would be glad to see value of my money spent on advertising on Facebook.

Update

A report by Nielsen confirms Facebook’s position in advertising.

Why Coca-cola and Honda succeeded on Facebook while P&G slipped

By Tai, May 30, 2009 9:18 am

Ted McConnell, Procter & Gamble’s head of marketing, has been famous with his exclamation “What in heaven’s name made you think you could monetise the real estate in which somebody is breaking up with their girlfriend?”

Meanwhile, Coca-cola enjoys massive fan base on Facebook, and Honda was reported pleased with its campaign.

Why?

Was it because Coke is the #1 brand in the world? I don’t think so, since P&G is also one of the top brands. The difference in brand awareness between Coke and P&G products should not account for the large gap between the two pages on Facebook.

Was it because a Honda product was more expensive than a P&G product? I don’t think so. A can of Coke and a bottle of shampoo wouldn’t differ much a luxury experience.

So what accounts for the difference?

Because it came down to the core value of Facebook: relationships first, and ego second.

Relationship pressure

People go on Facebook to gain benefits from relationships, and respectively reinforce their connections.

A can of Coke is not simply a bit of beverage. The can of Coke is enjoyed by people when they hang out with friends, have lunch at McDonald’s, indulge in birthday parties. What are these activities but relationship reinforcement?

There is a direct, strong connection their in their behavior.

Meanwhile, a bottle of shampoo might be a little private. People have no need to show off their brands of their convenient goods because, sad but true, the brands do little to make consumers feel ‘cool’ or accepted in their communities.

People show off things to impress their peers on Facebook, that’s why they do with Coke, more than with convenient goods.

(Mild) Ego

A Honda feeds a consumer’s ego. Mostly everywhere, a vehicle is only less important than an apartment in people’s purchasing decision. It is common knowledge that people don’t only buy a car/motorbike, they buy the brand and the culture associated with it. They want something that makes them ‘cool’. A Honda does.

Again, a P&G product, while making people good, clean, safe, and healthy, has little say in a consumer’s inter-personal interactions.

How does it relate to Facebook? Well, as a person shows off his Honda, he feels that his ego is fed. This does not normally occur with showing off something in his private spaces.

Sadly, it all comes to the game of perception.

Conclusion

There’s nothing and no-one to blame here. And I am proud to say I’m a big fan of P&G. But, as a matter of fact, every real estate has its own norms.

I would still love P&G’s conventional messages, so don’t let one campaign hinders any further campaign. P&G is cool no matter what, in very different channels.

Look up the sky, feel it, and call your mother. Telstra on Mother’s day 2009

By Tai, May 10, 2009 6:14 pm

The sky above The University of New South Wales, one day before Mother’s Day 2009.

Telstra Mobile Australia Advertising Mother's Day 2009

Telstra Mobile Australia Advertising Mother's Day 2009

Telstra Mobile Australia Advertising Mother's Day 2009

Observations from Facebook’s business

By Tai, May 4, 2009 11:55 am

The previous article of mine sketched the architecture of Facebook’s business.

Bloomberg recently detailed how advertising, the main source of income, is done on Facebook.

Generally, some points from a business perspective can be drawn from this:

  1. Facebook turns market research from “push” to “pull”. Facebook users, who respectively are businesses’ consumers, are given the platform and are tempted to share their preferences in lifestyle without being directly asked by market research people.
  2. Lesson: while Sandberg affirmed “You want to target everyone? We can give you that“, more luxury products/services have higher chance to win than convenient goods. The reason is that people (consumers) usually associate themselves with things they believe make them perceived by their connections as connoisseur. Coca cola is a nice exception to this, partly because it is one of the most expensive brands in the world.
  3. Effects of relationship-centric of Facebook
    • Segment the market for businesses. People with similar demographic characteristics can be grouped together. It is more difficult to do so on ego-centric networks like MySpace
    • People are influenced by their friends and families. Marketing techniques using social and psychological influence can be used

Facebook’s Profitable Business Architecture

By Tai, April 10, 2009 7:34 pm

I’d suspected that Facebook is moving fast toward monetization.

But Sheryl Sandberg’s confirmation that Facebook has been profitable for 5 consecutive quarters still comes as a nice surprise.

Nevertheless, considering this model, where all the money has been generated is not much a question.

Facebook Business Model Architecture

Where else has Facebook been making money on? Will Social Search come next? Will Facebook do Data Mining behind the scene?

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