FACEBOOK TESTS REAL-TIME GEOTARGETED ADS
Over time, if you’re observant, you might have noticed a change in the ads you see when browsing Facebook. (Unless you have been too engrossed in stalking an ex or browsing photos that show that your high-school friend was unable to lose that baby weight) I can remember a time when all the ads I saw were for bodybuilding and The National Guard, neither of which appealed to me. But Facebook has gotten smarter with its ad targeting, and might possibly be getting even craftier.
According to Ad Age, Facebook is currently running tests by using real-time conversations in ad targeting. Apparently it is only being tested on 1% of users, which amounts to about 6 million people.
But I’ve been receiving targeted ads for a while now, you say. You are correct, you have. But those targeted ads work differently. All of your posts, statuses, likes, etc. are used to select which ads you are shown. For example, instead of National Guard ads, I now mostly see ads for zombie games and Battlestar Galactica spinoffs. Touche, Facebook. Those preferences are tracked over time and then targeted ads are delivered.
Real-time ads would attempt to target a user based on what they just said; whether it be a status update, a wall posting or a comment. This means if I update my status to, “Just totaled my car, wtf” I might be immediately shown an ad for Toyota or Ford. If my comment on my friend’s status suggests that she should have an orange soda with her burger, I might soon see an ad for Sunkist on my screen. According to Ad Age,
“Facebook didn’t have to create new ads for this test and no particular advertiser has been tapped to participate — the inventory remains as is.”
So this is all clearly in its testing phase.
Reggie Bradford, CEO of Facebook marketing company Virtue is quoted as saying:
“The long-held promise of local is to deliver timely, relevant and measurable ads which drive actions such as commerce, so if Facebook is moving in this direction, it’s brilliant. This is a massive market shift everyone is pivoting toward, led by services such as Groupon. Facebook has the power of the graph of me and my friends placing them in the position to dominate this medium.”
I did my own unscientific research to see if I was a part of this select few. I broadcast my need for a pizza to the world via a status update. I posted on my friend’s wall that we really needed to get Final Four tickets. I commented on a friends status that I heard there was a Groupon for Chick-fil-a. I even replied to a comment on my own status about the pizza. Much to my chagrin, I don’t think I am being real-time ad targeted. On the upside, I’m sure I confused my friends quite a bit.
Would real-time targeted ads work any better than the regular targeted ads? It depends. Facebook ads are notoriously easy to ignore. But if you were extremely hungry, and a Papa John’s ad popped up tempting you with an $8 large 3-topping, who’s to say you might not click on it once. Of course there must be some concerns that the real-time ads might occasionally get it wrong . If you break up with your girlfriend Wendy, you might not want a Junior Bacon Cheeseburger.
Or maybe you do.
TWITTER BETA TESTING ITS BRAND OF GEOTARGETED TWEETS
Twitter began beta testing the ability to geographically target Promoted Accounts and Promoted Tweets. The feature, rolled out to advertisers using the platform, targets users in specific countries. In the U.S., Promoted Tweets also can target users in specific metro regions.
When asked how many companies are testing the feature, Twitter spokesperson Matt Graves declined to disclose specifics, but said "as with all of our advertising efforts, we are watching this test closely and will use feedback from advertisers and Twitter users to fine-tune and iterate on the feature."
Analyst firm eMarketer estimates about 20.6 million U.S. adult Internet users will use Twitter at least once monthly this year, up 26.3% from 2010. Use levels will continue to rise, reaching 27.7 million U.S. adults in 2013.
Twitter's global ad revenue should reach $250 million by 2012 -- up from $45 million in 2010, the majority coming from the U.S. market, according to eMarketer.
Clix Marketing founder David Szetela has the option to target by country and metro area within the country. Although the feature appears on his version of the Twitter advertising dashboard, he has yet to being geographically targeting Promoted Tweets.
Szetela began running campaigns earlier this year, supporting advertisers such as Guy Kawasaki; he can see benefits from geotargeting Promoted Tweets."Obviously, if my target audience is restricted geographically, I can save money and increase return on investment of my ad campaign by making sure only my target sees my Promoted Tweets," he said. "I can also use geo-specific messaging in my tweets, such as 'If you're a New England Patriots fan, we've got a special deal just for you!'"
Initially, Szetela believes the biggest challenge will come from some metro areas that do not have the ability to reach a large number of people. Expect that to change as more people sign on and Twitter's member volume grows, he says.
COMMENTARY: Real-time geotargeted advertising should not be confused with geographically targeted ads used by location-based check-in services like foursquare, Gowalla and Facebook Places. Geographically targeted ads are used by location-based check-in services to serve me ads daily specials or merchant specials that I am in close proximity to.
Real-time geographically targeted advertising is a bit different. Here's how those work, If I open my big mouth and post on my Facebook wall or post a new tweet, "My wife and I don't get it on anymore, so I am getting a divorce," I will be immediately served with a display ad from a divorce lawyer in my hometown. How cool could that be. No more Yellow Pages. Just post shit on your Facebook ad, and Facebook does the "walking" through the Yellow Pages for me. Ahh, thanks Zuck.
By 2013, the geotargeted display advertising market is forecast to reach $1.9 billion, up from the $879 million spent on banners in 2008—a compound annual growth rate (CAGR) of 16%—according to BIA/Kelsey.
The geotargeted segment is expected to rise to 15% of the display ad market share in 2013, compared with 10.2% in 2008.
The locally bought portion of the market, which primarily consists of small and medium-sized businesses, will record the highest growth, with a CAGR of 66% during the five-year forecast period. The SMB segment will grow from $45 million in 2008 to $565 million in 2013.
Courtesy of an article dated March 24, 2011 appearing in WebProNews and an article dated March 25, 2011 appearing in MediaPost Publications Online Media Daily and an article dated December 7, 2009 appearing in MarketingProfs
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