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Unformatted text preview: perf o rmed so po o rly that the
f irm pulled them in early 2010.C. McCarthy, “Mo re So cial, P lease: Facebo o k Nixes Banner Ads,”
CNET, February 5, 2010. Lo o kery, a o ne-time ad netwo rk that bo ught ad space o n Facebo o k in
bulk, had been reselling invento ry at a CP M o f 7.5 cents (no te that Facebo o k do es o f f er advertisers
pay-per-click as well as impressio n-based, o r CP M, o ptio ns).B. Urstadt, “The Business o f So cial
Netwo rks,” Techno lo gy Rev iew , July/ August 2008; J. Hempel, “Finding Cracks in Facebo o k,”
Fo rtune, May 13, 2008; and E. Scho nf eld, “Are Facebo o k Ads Go ing to Zero ? Lo o kery Lo wers Its
Guarantee to 7.5-cent CMP s,” TechCrunch, July 22, 2008. By co ntrast, inf o rmatio n and newso riented sites do much better, particularly if these sites draw in a valuable and highly targeted
audience. The so cial netwo rking blo g Mashable has CP M rates ranging between seven and thirtythree do llars. Techno lo gy Rev iew magazine bo asts a CP M o f seventy do llars. TechTarget, a Web
publisher f o cusing o n techno lo gy pro f essio nals, has been able to co mmand CP M rates o f o ne
hundred do llars and abo ve, f ueling that f irm’s IP O. Getting Creative with Promotions: Does It Work?
Facebo o k and o ther so cial netwo rks are still learning what wo rks, and Facebo o k, app f irms, and
advertisers have begun experimenting with all so rts o f mo dels. Many f eel that Facebo o k has a unique o ppo rtunity to get co nsumers to engage with their brand, and so me initial experiments
po int where this may be heading. Many f irms have been leveraging so -called engagement ads by making their pro ducts part o f the
Facebo o k f un. Using an engagement ad, a f irm can set up a pro mo tio n where a user can do things
such as “Like” o r beco me a f an o f a brand, RSVP to an event and invite o thers, watch and co mment
o n a video and see what yo ur f riends have to say, send a “virtual gif t” with a perso nal message, o r
answer a questio n in...
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- Winter '14