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	<title type="text">paidContent news watch | Facebook</title>
	<subtitle type="text">The Economics of Digital Content</subtitle>
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	<updated>2012-02-12T18:31:12Z</updated>
	<rights>Copyright (c) 2012, paidContent</rights>
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		<entry>
			<title>How To Use Facebook&#39;s Open Graph To Build Your Business</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-how-to-use-facebooks-open-graph-to-build-your-business/"/>
			<id>tag:contentnext.com,2012-02-09:article/419-how-to-use-facebooks-open-graph-to-build-your-business</id>
			<published>2012-02-09T19:31:48Z</published>
			<updated>2012-02-10T14:45:49Z</updated>
			<author>
				<name>Ben Elowitz</name>
				<uri>http://paidcontent.org/member/11096/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Last year, it became clear that Facebook is well on its way to <a href="http://digitalquarters.net/2011/09/sos-the-social-operating-system/">becoming a social operating system</a> underlying our digital lives.&nbsp; And the enhanced Facebook Open Graph makes that vision a reality.&nbsp; 
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					<p>Last year, it became clear that Facebook is well on its way to <a href="http://digitalquarters.net/2011/09/sos-the-social-operating-system/">becoming a social operating system</a> underlying our digital lives.&nbsp; And the enhanced Facebook Open Graph makes that vision a reality.&nbsp; 
</p><p>My company, Wetpaint, was fortunate to participate in a beta phase with Facebook and be a launch partner with The Washington Post (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=WPO" class="ticker" title="WPO">NYSE: WPO</a>) social reader project; in the process, we have gotten a glimpse of how to build media for a fully social web, and it&#8217;s had a<a href="http://digitalquarters.net/2012/01/social-leaderboard-17-growth-in-traffic-from-social-and-wetpaint-is-the-new-1/" title=" dramatic"> dramatic</a> impact on our business. </p>

<p>We have learned that without question, there is a ton to be gained in audience acquisition, branding, and retention by integrating into the Open Graph.&nbsp; And, based on the few months’ head start we’ve had, I wanted to provide a brief guide to what has worked, and explain how to take full advantage of the Open Graph.&nbsp; </p>

<p>Here, then, are the four most important elements:&nbsp;  </p>

<p><strong>1. Determine what’s inherently social in what you do for your audience</strong> – This is the most important part, and it’s not easy, because people don’t want to share everything they read online.&nbsp; Rather, they share the things that are helpful to others, or contribute to their public identity. </p>

<p>Don’t fight it.&nbsp; Work with it, instead.&nbsp; Provide content your audiences will use to define themselves and enhance their reputations as a curator.&nbsp; With your content, what specifically can they share, and what can it say about them?&nbsp; </p>

<p>I especially like this item from a cousin who recently posted this <a href="http://www.flavourgasmic.com/2009/05/deep-fried-captain-and-coke/">recipe for fried Coke</a> (what? oh yes!).&nbsp; If you think it means she’s a southern gourmet, you’d be right:&nbsp; she makes the best fried chicken I’ve ever had. And posting recipes like this makes sure we all know about her decadent down-home style.&nbsp; </p>

<p>People also respond to things that make them smile.&nbsp; Who wouldn’t like a picture of a <a href="http://icanhascheezburger.com/2011/09/06/funny-pictures-t-rex-you-so-crazy/">cat laughing with a dinosaur</a>?&nbsp; Sharing it makes a statement about what gems you can find, what loops you’re in, what makes you chuckle, and that you like brightening your friends’ day.&nbsp; </p>

<p>We are thumbs-up with things that back our opinions, or show we are in the know about things that are important to how we want to be perceived. For a news site, this means interests and causes that we want to support; and, for a sports site, it’s our tribal badging and admiration of teams and players. </p>

<p>And for games, movies, and events, it’s more about sharing something special together. Whether a concert or a conference, convening with others turns content into an experience. The phenomenon of Social TV that we see at Wetpaint, and throughout all TV programming, is proof positive that media events are made to be shared.&nbsp; </p>



<p>&nbsp;</p><p><strong>2. Start thinking in verbs – other than “Like”</strong> – To date, publishers have been focused on the page.&nbsp; Now it’s time to think about the interaction – not just with the page, but with the content.&nbsp; Think in verbs.&nbsp; Facebook has suggested a handful of obvious ones.&nbsp; Your audience should “watch” videos; “listen to” songs; and “read” articles.&nbsp; But beyond that, you can also add your own creative alternatives:&nbsp; “view” photo galleries, “lust for” celebrities, “OMG” scenes on TV, “vote for” reality TV contestants.&nbsp; All of these help define a relationship between your audience and what they love.&nbsp; And as a publisher, you get to take credit for that introduction and its viral distribution among a user’s circle.</p>

<p><strong>3. Own objects, not just content</strong> – In the now-more-open Open Graph world, the objects of our affections are no longer just dumb pages.&nbsp; Rather, you can define objects in the real-world – with the promise of improving Facebook’s and your audience’s connections to them, and to you.&nbsp; As with the examples above, the limit of what you can define is constrained only by your creativity; however, the focus should be on objects that are natural social extensions of your consumer experience.&nbsp; Don’t try to socialize objects that no one wants to share – I don’t want to circulate that I “zero balanced” my “bank account.”</p>

<p><strong>4. Live in Facebook’s world </strong>– It’s not really just Zuckerberg’s world … it’s your users’ world, too.&nbsp; 500 million Facebook users are logging in every day, and spend seven hours per month (on average) on Facebook.&nbsp; That’s why it’s important to create an experience that blends with the social world; and that experience needs to be connected, and in real-time. The more you integrate into Facebook’s clearing house, the more you can benefit from seamless transitions, access to connected user data, and user expectations of implicit sharing.&nbsp; Facebook Connect is critical; as is earning the Likes to be in a relationship with your audience.&nbsp; When you do that, you can program your users’ news feeds.&nbsp; At Wetpaint, we average 30 impressions per fan per month.&nbsp; I’ve never had that much communication in any of my relationships with friends or family (much to my mother’s dismay, which she reminds me of all the time), yet our consumers have it with us all year long.&nbsp; And, beyond the news feed, creating a Facebook canvas app (we’re working on a new one now) means you can truly be everywhere your audience wants you to be – both in Facebook and on the Web.&nbsp; </p>

<p>With the new Open Graph features, a short-term way of thinking about the opportunity is that you are integrating into Facebook’s technical architecture.&nbsp; But a far more meaningful – and, ultimately, more beneficial – way of thinking about it for both your users and your business is that you are integrating into your users’ lives.&nbsp; </p>

<p>I overheard someone at last year’s F8 event say that Facebook is no longer “Face”-book, it’s really becoming “Life”-book.&nbsp; It’s that level of integration with real life that can create the most powerful opportunities for the next era of the Web.&nbsp; </p>

<p><em><a href="http://digitalquarters.net/about/">Ben Elowitz</a> (@elowitz) is co-founder and CEO of <a href="http://www.wetpaint.com">Wetpaint</a>, a web publisher, and author of the <a href="http://www.digitalquarters.net">Digital Quarters</a> blog. Prior to Wetpaint, Elowitz co-founded <a href="http://www.bluenile.com">Blue Nile</a>, the online retailer of luxury goods. He is also an angel investor in various media and e-commerce companies. </em>
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									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
						</entry>
	
		<entry>
			<title>Facebook&#39;s Mobile Plan: Carrier Billing, Analytics For Apps Via Bango Deal?</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebooks-mobile-plan-carrier-billing-analytics-for-apps-via-bango-deal/"/>
			<id>tag:contentnext.com,2012-02-08:article/419-facebooks-mobile-plan-carrier-billing-analytics-for-apps-via-bango-deal</id>
			<published>2012-02-08T10:35:45Z</published>
			<updated>2012-02-08T13:39:46Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Last week, we highlighted how Facebook is <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="already using mobile devices for commercial services">already using mobile devices for commercial services</a>&#8212;enabling people to buy Facebook Credits and charge them directly to their mobile bills. Now, it’s increasingly looking like that may just be the beginning: today, UK-based mobile billing and analytics specialist Bango (AIM: BGO) announced that it had signed a deal to provide unspecified services to the social network.
</p>
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				<![CDATA[
					
					<p>Last week, we highlighted how Facebook is <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="already using mobile devices for commercial services">already using mobile devices for commercial services</a>&#8212;enabling people to buy Facebook Credits and charge them directly to their mobile bills. Now, it’s increasingly looking like that may just be the beginning: today, UK-based mobile billing and analytics specialist Bango (AIM: BGO) announced that it had signed a deal to provide unspecified services to the social network.
</p><p>This is a significant deal for Facebook on two separate fronts:</p>

<p>&#8212;<strong>It ties Facebook up with one of the bigger companies in the area of mobile billing</strong>: Bango is the payments provider for RIM&#8217;s App World, which yesterday once again laid claim to being the second-most profitable app storefront after Apple&#8217;s&#8212;largely because of the fact that it has a strong business in paid apps and that those apps are billed directly to users&#8217; mobile bills in 34 countries. RIM (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=RIMM" class="ticker" title="RIMM">NSDQ: RIMM</a>) yesterday claimed that <a href="http://paidcontent.org/article/419-rim-app-world-is-now-at-60000-apps-13-percent-of-publishers-earn-100k/" title="13 percent of its App World developers earn in excess of $100,000">13 percent of its App World developers earn in excess of $100,000</a>, which is massive considering how many developers earn next to nothing.</p>

<p>In December last year, Bango also <a href="http://paidcontent.org/article/419-amazon-may-be-eyeing-up-carrier-billing-for-its-mobile-content-business/" title="secured a deal with Amazon">secured a deal with Amazon</a>. </p>

<p>Like the Facebook <a href="http://www.stockmarketwire.com/article/4305636/Bango-signs-deal-with-Facebook.html" title="announcement">announcement</a> that deal provided no detail about what it was that Bango would do for the company&#8212;although that, too, could be an opportunity for Amazon (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AMZN" class="ticker" title="AMZN">NSDQ: AMZN</a>) to build carrier billing into its mobile apps. A spokesperson contacted today declined to comment on the details of either the Amazon or Facebook deals, although she did confirm that Amazon was an active customer.</p>

<p>The use of carrier billing also begs another question: for what? That could point to Facebook offering richer mobile services on its web platform. The could include paid content apps or the ability to pay for other goods and services, perhaps linked up with location-based deal offerings. As the <a href="http://blogs.ft.com/fttechhub/2012/02/facebook-bango-mobile-payments/?utm_source=twitterfeed&amp;utm_medium=twitter#axzz1ljhmbgZF" title="FT">FT</a> points out, that&#8217;s something that Bango itself started to promote, coincidentally just when news began to leak out of Facebook&#8217;s own HTML5 push, code-named &#8220;Project Spartan.&#8221;</p>

<p>It could also mean Bango working alongside or in place of other billing partners: Bango competes directly with Facebook partners Zong and Boku.</p>

<p>&#8212;<strong>The other significant side of Bango&#8217;s business is in the area of analytics for mobile web sites as well as apps</strong>. This is a service it already provides various high-profile publishers like CNN, Fox (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NWS" class="ticker" title="NWS">NSDQ: NWS</a>), and EA Mobile, among others&#8212;as well as to mobile ad agency AKQA&#8212;to help track how mobile content is used and consumed. That helps the publishers not only track what content &#8220;works&#8221; but also can be used to build profiles to sell advertising and marketing services.</p>

<p>If reports are true, that is another area where Facebook is going to have to start doing some serious tracking, too: the company is reportedly going to start inserting &#8220;sponsored stories&#8221; into mobile users&#8217; feeds, which would represent Facebook&#8217;s first big foray into offering marketing services to brands since filing for its IPO last week&#8212;where it pointedly mentioned it had yet to start offering such revenue-generating services.</p>

<p>Facebook is holding an <a href="https://www.facebook.com/business/fmc" title="advertising confab">advertising confab</a> at the end of this month&#8212;its first high-profile foray into wooing Madison Avenue&#8212;where it may well announce more details about how its mobile plans are progressing.</p>

<p>The other point to be made here is that it is interesting that Facebook is taking the road less traveled by companies like Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) and exploring routes to align itself with carriers as it expands what it does on mobile. It&#8217;s not the first time: Facebook has a whole swathe of non-smartphone users that can update their statuses by mobile; many of those feature phone Facebookers are using SMS, which also require carrier interconnections to operate. 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-amazon-may-be-eyeing-up-carrier-billing-for-its-mobile-content-business/" title="Update: Amazon Eyeing Up Mobile Carrier Billing With New Bango Deal?">Update: Amazon Eyeing Up Mobile Carrier Billing With New Bango Deal?</a></li>
<li><a href="http://paidcontent.org/article/419-rim-app-world-is-now-at-60000-apps-13-percent-of-publishers-earn-100k/" title="RIM: App World Is Now At 60,000 Apps; 13 Percent Of Publishers Earn $100k+">RIM: App World Is Now At 60,000 Apps; 13 Percent Of Publishers Earn $100k+</a></li>
<li><a href="http://moconews.net/article/419-blackberry-takes-larger-cut-of-developer-revenues-in-updated-app-world/" title="BlackBerry Takes Larger Cut Of Developer Revenues In Updated App World">BlackBerry Takes Larger Cut Of Developer Revenues In Updated App World</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are">Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</a></li>
<li><a href="http://moconews.net/article/419-facebooks-next-step-in-mobile-domination-a-feature-phone-app/" title="Facebook's Next Step In Mobile Domination: A Feature Phone App">Facebook's Next Step In Mobile Domination: A Feature Phone App</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising">Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising</a></li>
</ul>

									]]>
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									<category term="817" scheme="http://paidcontent.org/topics" label="Europe"/>
							
									<category term="832" scheme="http://paidcontent.org/topics" label="UK"/>
							
							
							
						</entry>
	
		<entry>
			<title>Social TV&#39;s Big Week: Flingo&#39;s $7M Funding Follows Super Bowl</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-social-tvs-big-week-flingos-7m-funding-follows-super-bowl-/"/>
			<id>tag:contentnext.com,2012-02-07:article/419-social-tvs-big-week-flingos-7m-funding-follows-super-bowl-</id>
			<published>2012-02-07T23:08:43Z</published>
			<updated>2012-02-08T00:21:44Z</updated>
			<author>
				<name>Daniel Frankel</name>
				<uri>http://paidcontent.org/member/23818/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Two days after social TV made a splash at the Super Bowl, yet another new entry in that field, Flingo, announced that it has secured $7 million in series A funding from August Capital.&nbsp; </p>


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					<p>Two days after social TV made a splash at the Super Bowl, yet another new entry in that field, Flingo, announced that it has secured $7 million in series A funding from August Capital.&nbsp; </p>

<p>Best known as the company started by BitTorrent co-founder Ashwin Navin, Flingo develops software for smart TVs from manufacturers including Samsung, Vizio, KG and Sanyo, among others. It&#8217;s entering a crowded market, but Flingo is trying to separate itself from the pack by playing up its social TV convenience. The chips are able to recognize thousands of broadcast shows – in other words, the TV tells the user’s second-screen device what’s being watched instead of the user having to input data like hashtags into their phones.</p>

<p>You can admit to your friends that you&#8217;re watching <em>Smash</em> with a single click&#8212;a convenience, of course, that also appeals to advertisers. “Our new investors share our vision that smart TVs represent a unique way to improve the TV viewing experience and an opportunity to unlock new sources for growth in the $60 billion TV advertising business,” Navin said in a statement.</p>

<p>A small but growing group of other companies – GetGlue, IntoNow, Shazam – are also developing apps that combine the experience of watching live TV with social networking on platforms like Twitter and Facebook.&nbsp; While <a href="http://paidcontent.org/article/419-social-tv-and-the-super-bowl-when-will-marketers-start-really-spending/" title="they’ve not diverted">they’ve not diverted</a> any significant portion of their collective $60 billion TV spend to the technology, advertisers are eager to experiment on these second-screen platforms – and that was proven Sunday with brands like Pepsi and Anheuser Busch conducting a number of social TV campaigns during the Super Bowl.</p>

<p>For this advertiser interest to grow into true monetization, GetGlue CEO president and CEO Alex Iskold told paidContent Friday, his company needs to grow its current user base of around 2 million to more than 20 million.</p>

<p>During the important litmus test of the Super Bowl, GetGlue said it’s own data shows it went in the right direction&#8212;a record 160,000 users &#8220;checked in&#8221; to the service, the company claims, up 300 percent from the 20,000 that checked in for the 2011 Super Bowl. (Other interesting data: GetGlue also said that 63 percent of its Super Bowl usage came from mobile phones, while iPad usage was only around 3 percent.)</p>

<p>Meanwhile, working with sponsors including Toyota, Best Buy, Pepsi,&nbsp; Bud Light and Fed Ex during the big game, Shazam reported “record engagement” for its platform, describing usage in the &#8220;millions.&#8221;</p>

<p>Of course, standard third-party metrics would gauge the level of growth in the social TV sector more effectively.</p>

<p>That data is hard to find, but a small, rather <a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/02/07/prweb9172937.DTL" title="informal study">informal study</a> conducted by connected TV marketing company CTV Advertising involving 10 second-screen Super Bowl watchers found that there was “deeper engagement” for advertisements that rewarded social TV users with incentives. </p>

<p>Yahoo’s IntoNow, for example, made those who tagged a Pepsi Max Super Bowl ad eligible for a lifetime supply of the cola beverage.</p>

<p>Notably, however, the CTV study also found that six out of the 10 subjects noted getting flack from their real social connections – i.e. people actually present in the room with them – for being dialed into a mobile device while watching the game.</p>

<p>Four of 10 participants also said the second-screen app distracted them from the commercials unfolding on the primary screen. And seven of 10 said they had trouble getting their apps to work properly.</p>


											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-social-tv-and-the-super-bowl-when-will-marketers-start-really-spending/" title="Social TV And The Super Bowl: When Will Marketers Start Really Spending?">Social TV And The Super Bowl: When Will Marketers Start Really Spending?</a></li>
</ul>

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			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
						</entry>
	
		<entry>
			<title>Facebook Mobile Ads Developing: Sponsored Stories Coming &#39;Within Weeks&#39;</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebook-mobile-ads-developing-sponsored-stories-coming-within-weeks/"/>
			<id>tag:contentnext.com,2012-02-06:article/419-facebook-mobile-ads-developing-sponsored-stories-coming-within-weeks</id>
			<published>2012-02-06T11:00:18Z</published>
			<updated>2012-02-06T11:17:20Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>It&#8217;s not digital advertising in the sense of display ads and search results, but it looks like we are getting a bit more color on what it is that Facebook will do first in the world of mobile marketing, and it could be coming online &#8220;within weeks.&#8221;
</p>
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			</summary>
			<content type="html">
				<![CDATA[
					
					<p>It&#8217;s not digital advertising in the sense of display ads and search results, but it looks like we are getting a bit more color on what it is that Facebook will do first in the world of mobile marketing, and it could be coming online &#8220;within weeks.&#8221;
</p><p>The company is gearing up to start inserting &#8220;featured stories&#8221; into people&#8217;s mobile feeds&#8212;effectively, marketing-led posts&#8212;which could start appearing as soon as early March. The date and news of the launch comes from the <a href="http://www.ft.com/intl/cms/s/0/a0bd164c-500c-11e1-a3ac-00144feabdc0.html#axzz1lY792Clp" title="FT">FT</a>, which cites several people familiar with Facebook&#8217;s planning as its source.</p>

<p>Since filing its S-1 for an initial public offering last week, there has been a lot of speculation on how, exactly, mobile will fit into Facebook&#8217;s money-making picture longer term. The company was very sober in its description of its mobile business&#8212;usage is growing faster than even desktop engagement, but there&#8217;s no money in that growth yet, it admitted. </p>

<p>That was something of a bum note in a document that otherwise <a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="dazzles">dazzles</a> with its growth story to date.</p>

<p>If the FT report is true, it could mark the first step in Facebook&#8217;s strategy to change that and start to make marketing dollars out of its 425-million active mobile users, and take a portion of a mobile ad market that is going to top <a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="$2 billion">$2 billion</a> in the U.S. alone this year.</p>

<p>Facebook still has a long way to go before its mobile presence&#8212;via the mobile web and apps&#8212;is a mirror, or even enhanced, version of what it offers on the desktop. However, it does look like there may be also some developments underfoot there as well, in the form of <a href="http://techcrunch.com/2012/02/05/news-feed-app-bookmarks/" title="app buttons">app buttons</a> appearing on Facebook&#8217;s mobile web site.</p>

<p>Meanwhile, the news of &#8220;featured stories&#8221; appears to be a development on a story from <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="last week">last week</a>, which quoted Paul Gelb, head of mobile for agency Razorfish, saying that his company was trialling rich-media mobile advertising with Facebook.</p>

<p>Facebook may well be looking into more classic display ads for its mobile interfaces, but in any event Gelb later clarified that he was referring to &#8220;rich media featured stories&#8221;, not ads.</p>

<p>But if featured stories are what are in play here, Facebook gave nothing away in its own statement to paidContent: &#8220;We want to clarify that we are not working with any agency to create paid ads on our mobile platform,&#8221; a spokesperson said in an email.</p>

<p>Even so, the past few days are not the first time that the subject of Facebook mobile sponsored stories have come up: in December, Bloomberg also noted that Facebook would launch such a service in March 2012.</p>

<p>Facebook has already taken over in markets like the U.S. and UK in terms of having the biggest share of revenues in online display ads, so it seems like a no-brainer that it would take that pole position into the mobile sphere. However, issues over privacy, and the basic lack of real estate on a mobile screen have been some of the gating factors in Facebook taking up the mobile marketing opportunity more aggressively. </p>

<p>When Carolyn Everson, Facebook&#8217;s global VP of marketing solutions, spoke at paidContent&#8217;s Advertising conference in September 2011, she highlighted Facebook&#8217;s caution in this mobile:</p>

<p>“We are holding ourselves to as high a standard as possible on mobile,” she said. “I don’t rule mobile out, but we are working hard to figure out what the right model is. We haven’t figured that out yet.”</p>

<p>As we noted at the time, check-in deals have been the one exception to that so far: when a user is in a location where Facebook can deliver a relevant offer, those deals are pushed to users. But if that has driven revenues to Facebook, it was not enough to merit a mention in the S-1 form. 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising">Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-readying-mobile-ad-push-for-2012-right-around-the-expected-ipo/" title="Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO">Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO</a></li>
<li><a href="http://paidcontent.org/article/419-paidcontent-advertising-video-everson-no-facebook-mobile-ads-for-now/" title="paidContent Advertising Video: Everson: No Facebook Mobile Ads For Now">paidContent Advertising Video: Everson: No Facebook Mobile Ads For Now</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-we-havent-even-scratched-the-surface-with-marketing/" title="@ pcAds: Facebook Says It Hasn't Even Scratched The Surface With Marketing">@ pcAds: Facebook Says It Hasn't Even Scratched The Surface With Marketing</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are">Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</a></li>
<li><a href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/" title="Now Facebook Must Prove To Wall Street Its Ads Really Work">Now Facebook Must Prove To Wall Street Its Ads Really Work</a></li>
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine">2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="1141" scheme="http://paidcontent.org/topics" label="Privacy"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
							
						</entry>
	
		<entry>
			<title>Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/"/>
			<id>tag:contentnext.com,2012-02-03:article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising</id>
			<published>2012-02-03T15:20:07Z</published>
			<updated>2012-02-04T00:35:09Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Much has been made of the mobile risks that Facebook laid out in its S-1 IPO filing earlier this week. Essentially, it&#8217;s seeing/pushing massive growth in mobile, but it still hasn&#8217;t tried out advertising, its most effective route to revenues, on this platform. That&#8217;s not to say it won&#8217;t. But meanwhile, there is another area where Facebook is already making money through mobile.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Much has been made of the mobile risks that Facebook laid out in its S-1 IPO filing earlier this week. Essentially, it&#8217;s seeing/pushing massive growth in mobile, but it still hasn&#8217;t tried out advertising, its most effective route to revenues, on this platform. That&#8217;s not to say it won&#8217;t. But meanwhile, there is another area where Facebook is already making money through mobile.
</p><p>For as long as Facebook has been running its Facebook Credits program&#8212;the virtual currency that users can redeem on games and other content peddled through Facebook&#8217;s network&#8212;it has been letting users top up those Credits using their mobile phones. It does this in partnership with companies like (reportedly) <a href="http://www.insidefacebook.com/2010/11/09/report-boku-to-join-zong-as-a-mobile-payments-option-for-facebook-credits/" title="Boku">Boku</a> and (definitely) Zong, the payments company bought by eBay&#8217;s PayPal last year. Users can also top up their Credits via PayPal and credit cards.</p>

<p>It&#8217;s not known how much, exactly, is purchased via the mobile channel today, but it is an example of how mobile is actually already driving significant revenue for Facebook. &#8220;Facebook Credits make a lot of money through mobile phones,&#8221; enough that Zong was &#8220;growing very fast last year&#8221; because of Facebook purchases, according to Frederic Court, a partner with Advent Venture Parnters, one of the VCs that backed Zong before the eBay (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=EBAY" class="ticker" title="EBAY">NSDQ: EBAY</a>) buy. </p>

<p>This is because while sometimes the mobile payments were actually more expensive than a PayPal or credit card transaction, they are often a lot quicker to do, especially if you are in the middle of a game. And, as with other mobile-based payment options, they appeal to those who don&#8217;t have or want to enter card details.</p>

<p>Commissions on those Credits netted Facebook $557 million in revenues in 2011. (Facebook writes in the S-1 that the &#8220;other fees&#8221; that it designates on the same line as Payments was &#8220;immaterial.&#8221;)</p>

<p>At this point, Facebook doesn&#8217;t take any commission on Credits that are purchased via mobile: that service&#8212;which uses the premium SMS channel to send a code to a user to redeem Credits on the main site, and then charges the amount directly to the user&#8217;s mobile bill&#8212;already has some other parties taking a cut, including the provider (eg Zong or Boku), the mobile carrier and even another processing middleman. Rather, Facebook&#8217;s cut comes in the form of a commission on the payments, similar to what Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) takes for transactions on its App Store. That fee is 30 percent.</p>

<p><strong>Could Facebook eventually take more control of its payments, and potentially cut out some of those middle people?</strong> Probably not soon, in Court&#8217;s opinion. &#8220;Zong brought something to Facebook that it didn&#8217;t know how to do, and it became very deeply integrated,&#8221; he said. &#8220;I don’t see them starting to do what Zong does, which is connecting hundreds of operators.&#8221; Then again, he added, &#8220;When they have a worth of $100 billion with $10 billion on the balance sheet they can do pretty much anything they want.&#8221;</p>

<p>What&#8217;s interesting is that as Facebook starts to expand some of the other functionality on its mobile platform, that will also open up a lot more opportunities in terms of mobile transactions as well. </p>

<p>As Facebook enables and opens APIs to get publishers to build apps for its mobile platforms (via the web and apps), &#8220;Facebook will make sure those are monetized,&#8221; he said. &#8220;I have no doubt Facebook will be making money on mobile games and other content given the engagement and scale on mobile. There is an amazing opening there.&#8221; Paying for Credits that will actually get used on the device itself, he said, will be &#8220;even more natural.&#8221;</p>

<p>Facebook in the S-1 said it had 425 million monthly active users accessing the social network via mobile devices, with that number outpacing the growth of overall subscribers.</p>

<p>&#8220;Credits is a wallet that you can top up in all kinds of ways,&#8221; he said. &#8220;Facebook has created its own currency and has imposed that on anyone offering digital goods on Facebook.&#8221; If anything, that currency might have a life outside the platform, to to buy things outside of Facebook. </p>

<p>But even with the opportunity for Credits, Court doesn&#8217;t see this eventually overtaking revenues from whatever advertising Facebook plans to put on its mobile services &#8220;for a very simple reason,&#8221; which is down to how those games are played today. &#8220;If you look at Zynga, only between two and three percent of people who play actually pay. The rest play for free. Tt will be the same for Facebook on mobile, with only a fraction spending money,&#8221; he predicted. &#8220;With advertising, 100 percent of the population is exposed.&#8221;</p>

<p>Even though Facebook has listed &#8220;no mobile ads&#8221; as one of its risks on the S-1, it could be playing its cards very close to its chest: the last few days has been a lot of speculation already about how soon Facebook will launch those mobile ads. </p>

<p>Razorfish (via <a href="http://www.digiday.com/mobile/facebook-will-finally-run-mobile-ads-2/" title="Digiday">Digiday</a>) says that it is already working on a pilot for rich-media ads for the social network. </p>

<p>The blog <a href="http://www.insidefacebook.com/2012/02/02/facebook-likely-to-reject-traditional-mobile-ad-types-in-quest-to-monetize/?utm_source=twitterfeed&amp;utm_medium=twitter&amp;utm_campaign=Feed%3A+InsideFacebook+%28Inside+Facebook%29" title="Inside Facebook">Inside Facebook</a>, meanwhile, has put its money down on sponsored stories to be the &#8220;most likely&#8221; first stab at mobile advertising on the site, with running a mobile ad network the second-most likely option. (That&#8217;s one that we explored a bit <a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="yesterday">yesterday</a> as well.)</p>

<p><strong>Update</strong>: Razorfish&#8217;s VP of mobile, Paul Gelb, has made a correction on how his comments were portrayed in the Digiday story (via <a href="https://twitter.com/#!/PaulGelb/status/165488380887568384" title="Twitter">Twitter</a>): his agency is <em>not</em> working on any mobile ad buying with Facebook. &#8220;In the interview I was referring to rich media featured stories, not paid ads,&#8221; he said. </p>

<p>A Facebook spokesperson, via email, added the following: &#8220;We want to clarify that we are not working with any agency to create paid ads on our mobile platform.&#8221;
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-do-you-buy-this-free-apps-with-in-app-purchases-will-dominate-over-paid/" title="Updated: In-App Purchases To Overtake Sales From Paid Apps By 2013">Updated: In-App Purchases To Overtake Sales From Paid Apps By 2013</a></li>
<li><a href="http://moconews.net/article/419-ebay-antes-up-in-mobile-payments-game-buys-zong-for-240-million/" title="eBay Antes Up In Mobile Payments Game, Buys Zong For $240 Million">eBay Antes Up In Mobile Payments Game, Buys Zong For $240 Million</a></li>
<li><a href="http://moconews.net/article/419-isis-may-get-100-million-from-operators-but-whats-the-future-for-nfc/" title="Isis May Get $100M, But What Is The Future Of Its Mobile Technology?">Isis May Get $100M, But What Is The Future Of Its Mobile Technology?</a></li>
<li><a href="http://moconews.net/article/419-another-key-win-for-boku-a-deal-with-telefonicas-bluevia/" title="Another Key Win For Boku: A Deal With Telefonica's BlueVia">Another Key Win For Boku: A Deal With Telefonica's BlueVia</a></li>
<li><a href="http://moconews.net/article/419-boku-now-powers-carrier-billing-for-nearly-all-of-france/" title="Boku Now Powers Carrier Billing For Nearly All Of France">Boku Now Powers Carrier Billing For Nearly All Of France</a></li>
<li><a href="http://moconews.net/article/419-boku-inks-deals-with-carriers-in-france-korea-for-mobile-payments/" title="Boku Inks Deals With Carriers In France, Korea For Mobile Payments">Boku Inks Deals With Carriers In France, Korea For Mobile Payments</a></li>
<li><a href="http://moconews.net/article/419-boku-raises-more-money-from-new-advisors-andreessen-horowitz/" title="Boku Raises More Money From New Advisors Andreessen Horowitz">Boku Raises More Money From New Advisors Andreessen Horowitz</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are">Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</a></li>
<li><a href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/" title="Now Facebook Must Prove To Wall Street Its Ads Really Work">Now Facebook Must Prove To Wall Street Its Ads Really Work</a></li>
<li><a href="http://paidcontent.org/article/419-the-facebook-ipo-lowdown-2-1-12/" title="The Facebook IPO Lowdown 2-1-12">The Facebook IPO Lowdown 2-1-12</a></li>
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="667" scheme="http://paidcontent.org/topics" label="Entertainment"/>
							
									<category term="670" scheme="http://paidcontent.org/topics" label="Games"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="734" scheme="http://paidcontent.org/topics" label="Technologies / Formats"/>
							
									<category term="747" scheme="http://paidcontent.org/topics" label="SMS"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="1109" scheme="http://paidcontent.org/topics" label="Zynga"/>
							
							
							
						</entry>
	
		<entry>
			<title>Mashable CEO Beats Oprah In Influence—At Least On Reuters&#39; New Site</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-mashable-ceo-beats-oprah-rupert-murdoch-in-reuters-new-social-pulse/"/>
			<id>tag:contentnext.com,2012-02-02:article/419-mashable-ceo-beats-oprah-rupert-murdoch-in-reuters-new-social-pulse</id>
			<published>2012-02-02T17:14:01Z</published>
			<updated>2012-02-02T17:30:03Z</updated>
			<author>
				<name>Laura Hazard Owen</name>
				<uri>http://paidcontent.org/member/19747/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>In a new business-oriented social media site, Reuters (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=TRI" class="ticker" title="TRI">NYSE: TRI</a>) aims to index &#8220;the most talked-about news, companies and influencers across the Web.&#8221; A better definition might be &#8220;what people are doing on Twitter.&#8221;
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>In a new business-oriented social media site, Reuters (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=TRI" class="ticker" title="TRI">NYSE: TRI</a>) aims to index &#8220;the most talked-about news, companies and influencers across the Web.&#8221; A better definition might be &#8220;what people are doing on Twitter.&#8221;
</p><p>The &#8220;<a href="http://www.reuters.com/reuters-klout-50" title="Reuters and Klout 50">Reuters and Klout 50</a>&#8221; ranks CEOs by Klout score, but mostly by who is most active on Twitter. The rules: &#8220;To make the list the user has to be a CEO, active on Twitter, tweeting in English, and have their own handle separate from their company&#8217;s (sorry @zappos).&#8221; The top three &#8220;most influential execs on the web&#8221; are Mashable&#8217;s Pete Cashmore (with a Klout score of 89), Oprah Winfrey (81), and Rupert Murdoch (80). Others in the top 10 include Square CEO Jack Dorsey and Carnival CEO Micky Arison.</p>

<p>At the top of the page is &#8220;The Hit List,&#8221; links to stories &#8220;being talked about by the newsmakers we follow.&#8221; &#8220;The more a story is shared on Twitter by these influencers the more likely it is to appear here,&#8221; the site explains.</p>

<p>&#8220;The Conversation&#8221; curates journalist tweets&#8212;and is supposed to &#8220;track social-media spats and chats between two Twitter parties,&#8221; though the storyline at this point is hard to follow&#8212;and &#8220;Reuters Bloggers &amp; Reporters&#8221; features Reuters journalist tweets.</p>

<p>Overall, the site&#8217;s reliance on Twitter as penultimate social gauge seems somewhat limiting, with other sources&#8212;stories read and shared across Facebook, for instance, as well as stories trending on blogs and other news sites&#8212;not included. (You can see the stories shared on Facebook by your friends but not more broadly in the &#8220;business community&#8221; this site is aimed at.) &#8220;It’s not simply about how customers view a particular company, but how everyone engaged in the social realm views that company,&#8221; said Reuters&#8217; director of news product Alex Leo in a statement. Or at least how much they tweet about it.
</p>
									]]>
			</content>
			
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="728" scheme="http://paidcontent.org/topics" label="News Sharing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="981" scheme="http://paidcontent.org/topics" label="Reuters"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
							
						</entry>
	
		<entry>
			<title>Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/"/>
			<id>tag:contentnext.com,2012-02-02:article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are</id>
			<published>2012-02-02T14:20:49Z</published>
			<updated>2012-02-02T16:48:51Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Mobile advertising may not yet be something that Facebook has explored in its strategy to monetize its massive user base, and given the growth we’ve seen in the space, you can argue that it might be missing a trick.</p>


				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Mobile advertising may not yet be something that Facebook has explored in its strategy to monetize its massive user base, and given the growth we’ve seen in the space, you can argue that it might be missing a trick.</p>

<p>What&#8217;s interesting is that while companies like Google are certainly making huge strides in mobile advertising (more on that below), there are a number of mid-range/smaller players that are also seeing significant growth, in a market that <a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="eMarketer projects">eMarketer projects</a> will be worth $2.6 billion in 2012. </p>

<p>The implication here is that there is an opportunity, and one that is engaging users&#8212;or at least users are showing a great tolerance for the ads, as a tradeoff for other content. That opportunity is one that is being taken not just obvious Facebook competitors like Google, but many others. </p>

<p>Longer term that kind of fragmentation will probably lead to more consolidation, but for now as individual companies they continue to grow (and get funded, if you take the latest numbers from <a href="http://paidcontent.org/article/419-rutberg-mobile-accounted-for-over-40-6.3bn-of-all-tech-vc-in-2011/" title="Rutberg">Rutberg</a> on VC investments as an indication). </p>

<p>Here&#8217;s three examples of that growth from just the past day:</p>

<p>Today, mobile ad network <a href="http://www.mojiva.com" title="Mojiva">Mojiva</a> is claiming that it (not Google, not Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>), not Millennial Media) has become the first mobile ad network to reach more than one billion unique mobile devices&#8212;smart phones, feature phones, tablets and touch screen devices such like the iPod Touch&#8212;globally on a monthly basis. It says that the U.S. is its single-biggest market, with 224 million monthly unique devices, within a reach that extends to 190 countries, covering 8,000 publishers and apps, with more than 45 billion monthly ad requests overall. (Note: we&#8217;re hoping to catch up with Mojiva to get clarification on how it has reached the one-billion mark before bigger competitors.)</p>

<p>That news comes on the back of a couple of other significant mobile ad milestones announced in just the last 24 hours&#8212;again some of the smaller players. <a href="http://www.inner-active.com" title="Inneractive">Inneractive</a>, a mobile app monetization exchange, says that in the last year it has seen some very significant growth on its own mobile network: ad clicks are up by more than 700 percent; ad requests up by nearly 700 percent; a 981 percent increase on Apple&#8217;s iOS platform ad requests; and ad revenues up by 522 percent. We&#8217;ve asked Inneractive if we can get more concrete numbers behind those percentages. In the meantime, there&#8217;s an infographic below with more details on their growth in the last year, including geographical breakdowns.</p>

<p>A third player, <a href="http://www.jumptap.com" title="Jumptap">Jumptap</a>, has some numbers specifically around how mobile advertising is playing out across tablets&#8212;again, using stats from its own ad network: tablet network traffic was up by 229 percent the day after Christmas compared to the same period a year ago. Over the whole of that month, apparently the Kindle Fire&#8217;s share on Jumptap&#8217;s network went up from 10 percent to 30 percent suggesting &#8220;a trend for lower-priced tablets.&#8221; And overall, it notes that Android has the majority of impressions on its network (up to 59 percent in December 2011, compared to 38 percent in December 2010), with Apple&#8217;s share diminishing further (down seven percent to 22 percent in December 2011). </p>

<p>And what about Google? (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) It seems that for now its biggest strength in mobile advertising remains in mobile search, where it <a href="http://techcrunch.com/2012/02/01/google-mobile-search-ad-requests-more-than-doubled-in-2011/" title="expects revenues to more than double">expects revenues to more than double</a> in 2012 compared to 2011, bringing in sales of $5.8 billion compared to $2.5 billion last year&#8212;just under double the revenue that Facebook made in advertising on its main, non-mobile site last year.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/inneractive-infographic-feb-2012-o.jpg" />
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-living-in-a-smartphone-world-apple-number-three-among-all-mobile-player/" title="Living In A Smartphone World: Apple Number-Three Among ALL Mobile Players">Living In A Smartphone World: Apple Number-Three Among ALL Mobile Players</a></li>
<li><a href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/" title="Now Facebook Must Prove To Wall Street Its Ads Really Work">Now Facebook Must Prove To Wall Street Its Ads Really Work</a></li>
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine">2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine</a></li>
<li><a href="http://paidcontent.org/article/419-rutberg-mobile-accounted-for-over-40-6.3bn-of-all-tech-vc-in-2011/" title="Updated: Rutberg: Mobile Accounted For Over 40% Of All Tech VC In 2011">Updated: Rutberg: Mobile Accounted For Over 40% Of All Tech VC In 2011</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="678" scheme="http://paidcontent.org/topics" label="Gadgets"/>
							
									<category term="1163" scheme="http://paidcontent.org/topics" label="Tablets"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="746" scheme="http://paidcontent.org/topics" label="Search"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="847" scheme="http://paidcontent.org/topics" label="Amazon"/>
							
									<category term="682" scheme="http://paidcontent.org/topics" label="Kindle"/>
							
									<category term="849" scheme="http://paidcontent.org/topics" label="Apple"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="898" scheme="http://paidcontent.org/topics" label="Google"/>
							
									<category term="679" scheme="http://paidcontent.org/topics" label="Android"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
							
							
						</entry>
	
		<entry>
			<title>Now Facebook Must Prove To Wall Street Its Ads Really Work</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/"/>
			<id>tag:contentnext.com,2012-02-02:article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work</id>
			<published>2012-02-02T10:58:02Z</published>
			<updated>2012-02-02T15:29:03Z</updated>
			<author>
				<name>Robert Andrews</name>
				<uri>http://paidcontent.org/member/47/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Facebook has made a $3.1 billion business from a social advertising sector many, even it, concede is experimental and unproven. Now it must find that proof. But experimenting on Wall Street, as well as Madison Avenue, could prove challenging.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Facebook has made a $3.1 billion business from a social advertising sector many, even it, concede is experimental and unproven. Now it must find that proof. But experimenting on Wall Street, as well as Madison Avenue, could prove challenging.
</p><blockquote><p>&#8220;Our advertisers typically do not have long-term advertising commitments with us,&#8221; Facebook&#8217;s <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm" title="S-1">S-1</a> warned. &#8220;Many of our advertisers spend only a relatively small portion of their overall advertising budget with us.</p>

<p>&#8220;In addition, advertisers may view some of our products, such as sponsored stories and ads with social context, as experimental and unproven.</p>

<p>&#8220;Advertising on the social web is a significant market opportunity that is still emerging and evolving. We believe that most advertisers are still learning and experimenting with the best ways to leverage reach, relevance, social context, and engagement offered by Facebook.&#8221;</p></blockquote>

<p>Facebook manages to target standard display advertising very well because it knows so much about users, but the biggest opportunity may yet lay in getting users to participate in and distribute to their friends ad campaigns that are part of their social experience may yet hold greater promise. It is a long way from there, however.</p>

<blockquote><p>Forrester analyst Nate Elliott cautions (<a href="http://uk.reuters.com/article/2012/02/02/uk-facebook-growth-idUKTRE8110F520120202" title="via Reuters">via Reuters</a>): &#8220;I worry that the billions of dollars of revenue that they generated last year aren&#8217;t as solid as they need to be because the <strong>advertisers who spent the money aren&#8217;t as thrilled with the results they got</strong> for it.&#8221;</p></blockquote>

<p>Amongst advertising&#8217;s biggest skeptics is advertising&#8217;s biggest beast. WPP CEO Sir Martin Sorrell <a href="http://www.bbc.co.uk/news/business-15971279" title="thinks">thinks</a> advertisers will be challenged to reach social network users without offending them, making Facebook a better PR and word-of-mouth medium than a straight advertising one.</p>

<p>Indeed, Facebook has been trying to strike that very balance. But, with its quest to roll out the perfect formats still ongoing, <strong>Facebook has made frequent missteps</strong> along the way, such as its Beacon system, which proposed sharing users&#8217; web purchases to friends before it was aborted.</p>

<p>Today, less than half a percent of people who Like big brands&#8217; Facebook Pages actually bother to engage with them, according to new <a href="http://m.zdnet.com/blog/facebook/only-1-of-facebook-page-users-engage-with-brands/8142" title="research">research</a> from the Ehrenberg-Bass Institute.</p>

<p>Social is not Facebook&#8217;s only advertising play. Its offering today is focused mainly around display ads that run alongside users&#8217; feeds. Here, Facebook is so big that, in some key markets like the U.S. and UK, it&#8217;s actually the <a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="biggest player of all in display advertising, social or otherwise">biggest player of all in display advertising</a> - social or otherwise - leaving those that effectively created the display field&#8212;Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), AOL (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AOL" class="ticker" title="AOL">NYSE: AOL</a>) and others&#8212;in the dust.</p>

<p>But it&#8217;s social advertising where perhaps the greatest potential lays. And frankly <strong>Facebook, like its advertisers, has not yet cracked the nut</strong>; that mission goes on.</p>

<p>If, previously, upgrades like Beacon, Timeline and its perpetual redesigns have prompted user outcry, expect future responses to manifest as share price fluctuation when such revisions take place in the public glare of Wall Street.</p>

<p>Still, users&#8217; redesign shock often subsides, stock price can rebound accordingly. And, if Facebook can execute fully on the social advertising holy grail, it can become spectacularly successful.</p>

<p>None of this looks very problematic today.<strong> In 2011, Facebook advertising revenue rose 69 percent</strong> because it showed 42 percent more advertising thanks to a growing user base; it scored an 18 percent higher price per ad.</p>

<p>But Facebook concedes these growth rates may not be sustainable. &#8220;Our user growth has been a primary driver of growth in our revenue,&#8221; its S-1 says. &#8220;But <strong>&#8220;our rates of user and revenue growth will decline over time&#8221;</strong>, especially in the west.</p>

<p>One Facebook ad buying agency thinks that slowdown could be a <em>good</em> thing&#8230;</p>

<blockquote><p>&#8220;The market has now entered a phase where there is no longer any super-growth in user numbers to dilute the increases in cost caused by demand increases,&#8221; Alchemy Social managing director Will Ashton writes in a new white paper. &#8220;As such, we expect costs to increase at rates substantially higher than those we have seen previously.&#8221;</p></blockquote>

<p>In other words, <strong>advertisers rushing to Facebook are driving up demand</strong>, but the slowdown in Facebook user growth suggests finite supply, driving up the rates it can charge.</p>

<p>Outside the west, Facebook has a huge opportunity in mobile, having gathered 425 million users. But it&#8217;s not monetising a single one because it is not selling any ads through mobile. Worse - until then, mobile success could actually hurt the company from within&#8230;</p>

<blockquote><p>&#8220;Growth in use of Facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers <strong>may negatively affect our revenue and financial results</strong>,&#8221; the company warns. &#8220;Our ability to (generate mobile revenue) successfully is unproven.&#8221;</p></blockquote>

<p>$3.1 billion in 2011 ad revenue suggests Facebook is well on its way. What an amazing number for such a young paradigm. But some investors may question whether much of that was short-term experimentation by advertisers, meaning Facebook must work hard to prove its value to them as much as they have to itself.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1" muse_scanned="true">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-the-facebook-ipo-lowdown-2-1-12/" title="The Facebook IPO Lowdown 2-1-12" muse_scanned="true">The Facebook IPO Lowdown 2-1-12</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed" muse_scanned="true">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM" muse_scanned="true">Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM</a></li>
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All" muse_scanned="true">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
						</entry>
	
		<entry>
			<title>The Facebook IPO Lowdown 2&#45;1&#45;12</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-the-facebook-ipo-lowdown-2-1-12/"/>
			<id>tag:contentnext.com,2012-02-02:article/419-the-facebook-ipo-lowdown-2-1-12</id>
			<published>2012-02-02T04:59:05Z</published>
			<updated>2012-02-02T07:22:06Z</updated>
			<author>
				<name>Amanda Natividad</name>
				<uri>http://paidcontent.org/member/11/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p><small><b>&#187;</b></small>&nbsp; Facebook&#8217;s biggest risks explained (<a href="http://www.readwriteweb.com/archives/facebooks_biggest_risks_explained.php">ReadWriteWeb</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; Is Facebook’s IPO the start of something, or the end? (<a href="http://gigaom.com/2012/02/01/is-facebooks-ipo-the-start-of-something-or-the-end/">GigaOm</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; Zuckerberg claims &#8220;We don&#8217;t build services to make money&#8221; (<a href="http://www.forbes.com/sites/larrymagid/2012/02/01/zuckerberg-claims-we-dont-build-services-to-make-money/">Forbes</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; IPO filing says that Zynga accounted for 12% of Facebook’s revenue in 2011 (<a href="http://thenextweb.com/facebook/2012/02/01/ipo-filing-says-that-zynga-accounted-for-12-of-facebooks-revenue-in-2011/">TNW</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; From founders to decorators, Facebook riches (<a href="http://www.nytimes.com/2012/02/02/technology/for-founders-to-decorators-facebook-riches.html?_r=1&amp;smid=tw-nytimestech&amp;seid=auto">NYT</a>)
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p><small><b>&#187;</b></small>&nbsp; Facebook&#8217;s biggest risks explained (<a href="http://www.readwriteweb.com/archives/facebooks_biggest_risks_explained.php">ReadWriteWeb</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; Is Facebook’s IPO the start of something, or the end? (<a href="http://gigaom.com/2012/02/01/is-facebooks-ipo-the-start-of-something-or-the-end/">GigaOm</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; Zuckerberg claims &#8220;We don&#8217;t build services to make money&#8221; (<a href="http://www.forbes.com/sites/larrymagid/2012/02/01/zuckerberg-claims-we-dont-build-services-to-make-money/">Forbes</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; IPO filing says that Zynga accounted for 12% of Facebook’s revenue in 2011 (<a href="http://thenextweb.com/facebook/2012/02/01/ipo-filing-says-that-zynga-accounted-for-12-of-facebooks-revenue-in-2011/">TNW</a>)</p>

<p><small><b>&#187;</b></small>&nbsp; From founders to decorators, Facebook riches (<a href="http://www.nytimes.com/2012/02/02/technology/for-founders-to-decorators-facebook-riches.html?_r=1&amp;smid=tw-nytimestech&amp;seid=auto">NYT</a>)
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook Status Update: Company Files IPO Documents">Facebook Status Update: Company Files IPO Documents</a></li>
</ul>

									]]>
			</content>
			
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
						</entry>
	
		<entry>
			<title>2.7 Billion Daily Likes And Other Key Numbers From Facebook&#39;s S&#45;1</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/"/>
			<id>tag:contentnext.com,2012-02-01:article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-</id>
			<published>2012-02-01T23:28:26Z</published>
			<updated>2012-02-02T16:52:28Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook">Facebook</a>&#8216;s nearly 200-page <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc287954_10" title="S-1 filing">S-1 filing</a> appears to have crippled the Securities and Exchange Commission&#8217;s Edgar website with the mass of people going there to take a peek at the social network&#8217;s numbers. That traffic may well be matched by the weight of numbers in the filing itself. Here&#8217;s a look at some of them:
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook">Facebook</a>&#8216;s nearly 200-page <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc287954_10" title="S-1 filing">S-1 filing</a> appears to have crippled the Securities and Exchange Commission&#8217;s Edgar website with the mass of people going there to take a peek at the social network&#8217;s numbers. That traffic may well be matched by the weight of numbers in the filing itself. Here&#8217;s a look at some of them:
</p><h3>845 million active users, 100 billion &#8220;friendships&#8221;, 250 million photos uploaded daily</h3><p>
That works out to an average of 118.3 friends per user, and an average of <strike>3.4</strike> 0.3 pictures uploaded each day by those active users. Among those 845 million active users, more than half&#8212;483 million&#8212;are actually daily active users (taking the photo average up to 0.5 uploads per day, or around 15 per month). They&#8217;ve gone up by 48 percent since December 2010, when they stood at 327 million DAUs. Those numbers sound big on one hand, but not so big on another: doing some very basic math, this works out to average revenues per user of only $4.39. As a point of comparison, Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) currently makes about $36 per user; Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>) $16 per user (via <a href="http://www.cbsnews.com/8301-505124_162-57369642/facebooks-ipo-more-yahoo-than-google/" title="CBS">CBS</a>).</p>

<h3>$1 billion in net income on revenues of $3.711 billion</h3><p>
That works out to net income at about 30 percent of revenues in 2011, up slightly from the previous two years when net income was at about 29 percent of revenues. A sign of improving efficiencies?</p>

<h3>$3.2 billion in ad revenue</h3><p>
That&#8217;s the ad revenue figure for 2011, out of total revenues of $3.7 billion. The rest of its revenue is made up by Facebook Credits and other payments. The growth in ad revenues at the moment appears to be slowing down: Facebook says between 2009 and 2010, ad revenues grew by 145 percent, but then between 2010 and 2011 it grew by only 69 percent. There&#8217;s a clear sign that Facebook will need to further diversify how it makes its money if that trend continues. Credits and other fees are still very much on the rise and becoming a more prominent part of the overall revenue pie. In 2011 they amounted to 15 percent of revenues ($557 million); in 2010 they accounted for only five percent ($106 million).</p>

<p>{data_set="111"}</p>

<h3>$0 in mobile advertising</h3><p>
Facebook currently makes nothing from advertising on mobile devices because it has yet to extend ads to its mobile platforms. The S-1 didn&#8217;t specify whether it planned to introduce this and in fact cast its mobile prospects in the most sober light possible: Facebook thinks that growth in mobile monthly active users will exceed the growth of overall MAUs &#8220;for the foreseeable future&#8221; as Facebook continues to encourage more mobile use of its platform. There must be a business agenda in that but Facebook doesn&#8217;t spell it out here. In fact, it cautions that as more people could just start using the mobile platforms more than the desktop version, where ads do appear, &#8220;if we are unable to successfully implement monetization strategies for our mobile users, our revenue and financial results may be negatively affected.&#8221;</p>

<p><a href="http://paidcontent.org/table/facebook-executive-officers-compensation-for-2011" target="_blank"><img src="http://paidcontent.org/images/editorial/_original/facebook-executive-salaries-o.png" /></a></p>

<p>Zuck&#8217;s salary is going down to $1 from next year. At the moment Facebook has 3,200 employees in total. That works out to an average revenue per employee of $1,159,687.50.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status: S-1 Filed For Its IPO">Facebook's Status: S-1 Filed For Its IPO</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM">Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM</a></li>
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
<li><a href="http://paidcontent.org/article/419-google-facebook-twitter-execs-grilled-by-uk-mps-on-privacy/" title="Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy">Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/" title="Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion">Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
							
						</entry>
	
		<entry>
			<title>Facebook&#39;s Status Update: $5 Billion IPO Filed</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/"/>
			<id>tag:contentnext.com,2012-02-01:article/419-facebooks-status-s-1-filed-for-5-billion-ipo</id>
			<published>2012-02-01T21:51:07Z</published>
			<updated>2012-02-02T08:50:08Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>It took the whole day, but Facebook finally&#8212;as many <a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="expected">expected</a>&#8212;filed its <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/0001193125-12-034517-index.htm" title="S-1">S-1</a> with the Securities Exchange Commission for its long-awaited IPO. While guesstimates for how much Facebook would try to raise ranged from $5 billion to $10 billion, in the end, it looks like it is the lower of that range: $5 billion.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>It took the whole day, but Facebook finally&#8212;as many <a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="expected">expected</a>&#8212;filed its <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/0001193125-12-034517-index.htm" title="S-1">S-1</a> with the Securities Exchange Commission for its long-awaited IPO. While guesstimates for how much Facebook would try to raise ranged from $5 billion to $10 billion, in the end, it looks like it is the lower of that range: $5 billion.
</p><p>There&#8217;s no firm idea yet on what that $5 billion might mean for a valuation of the company. But here are some quick early numbers: Facebook made $3.71 billion in revenue in 2011, almost twice what it did in 2010. Of that $3.71 billion, $1 billion was net income. </p>

<p>{data_set="112"}</p>

<p>It has 845 million active registered users with 483 million of them termed &#8220;daily active users&#8221;. </p>

<p>Advertising accounted for 85 percent of its revenue last year. Zynga accounted for 12 percent of its revenues overall and over 80 percent of its payment revenues.</p>

<p>And to confirm the rumors we heard about which banks are involved: Morgan Stanley is leading the IPO filing with J.P. Morgan, Goldman Sachs, BofA Merrill Lynch, Barclays Capital, and Allen &amp; Co also participating.</p>

<p>Several folks are in line for a big gain on their investments. Facebook listed Accel Partners, DST Global Limited, Goldman Sachs, and T. Rowe Price as its major institutional shareholders. Dustin Moskovitz, a Facebook co-founder and CEO of startup Asana, is also a major stockholder listed in Facebook&#8217;s statement. Notable among the individual investors is Peter Thiel, who co-founded PayPal and will serve on Facebook&#8217;s board of directors.</p>

<p>It&#8217;s not just the IPO price, bankers and valuation that had people busy guessing. People have been speculating about other aspects of this IPO, including <a href="https://twitter.com/#!/moorehn/status/164686128950161408" title="how much of a fee the banks will get on the deal">how much of a fee the banks will get on the deal</a> (the range we&#8217;ve seen: between one percent and seven percent). </p>

<p>Now, with the IPO finally out, people will begin to pore over the numbers to figure out all sorts of things about Facebook that have not been completely clear while it was still in startup mode: What are its margins? What does it expect its growth rate to be? What are the comparative sizes of different business areas like advertising versus Facebook credits? What&#8217;s the geographical spread of its business?</p>

<p>However you cut it, the company has been a ground-breaker in the online world. You can argue about whether or not Facebook introduced the concept of social networking, but it has certainly run away with it, and now has 845 million users. And counting. </p>

<p>The question today is whether it will be able to convert that into a sustainable financial juggernaut, too?</p>

<p>More S-1 detail and number crunching <a href="http://t.co/ZoZU2mxO" title="here">here</a>.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM">Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-birth-certificate/" title="Facebook's Birth Certificate">Facebook's Birth Certificate</a></li>
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
<li><a href="http://paidcontent.org/article/419-google-facebook-twitter-execs-grilled-by-uk-mps-on-privacy/" title="Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy">Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/" title="Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion">Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-latest-scoop-thousands-of-journalists-use-subscribe-feature/" title="Facebook's Latest Scoop: Thousands Of Journalists Use Subscribe Feature">Facebook's Latest Scoop: Thousands Of Journalists Use Subscribe Feature</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1069" scheme="http://paidcontent.org/topics" label="Features"/>
							
									<category term="1145" scheme="http://paidcontent.org/topics" label="Breaking News"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
							
						</entry>
	
		<entry>
			<title>Report: Facebook&#39;s IPO To Start At $5 Billion, And It&#39;s Coming Wednesday AM</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/"/>
			<id>tag:contentnext.com,2012-01-31:article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am</id>
			<published>2012-01-31T21:52:03Z</published>
			<updated>2012-01-31T22:14:04Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Facebook&#8217;s much-anticipated IPO looks to be coming ever-closer, with a new report out with further details of what we will see come Wednesday morning.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Facebook&#8217;s much-anticipated IPO looks to be coming ever-closer, with a new report out with further details of what we will see come Wednesday morning.
</p><p>According to the <a href="http://www.ifre.com/facebook-readies-to-file-us$5bn-ipo-could-grow/20046277.article" title="International Financing Review">International Financing Review</a>, Facebook will be filing to raise $5 billion in a preliminary initial public offering prospectus on Wednesday morning. IFR cites unnamed people close to the deal as its source for the news.</p>

<p>That sum is significantly less than the <a href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/" title="$10 billion IPO that people have been reporting">$10 billion IPO that people have been reporting</a>&#8212;perhaps in response to some of the other IPOs hits and misses we saw last year among other internet heavy-hitters like Zynga and Groupon (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GRPN" class="ticker" title="GRPN">NSDQ: GRPN</a>). However, as IFR points out that number could go higher if investors demand it.</p>

<p>Also, because of this, no target valuation will be set tomorrow, writes IFR&#8212;contrary to the $80-billion valuations that we&#8217;ve seen floated around.</p>

<p>IFR says there will be five banks involved in the deal, Morgan Stanley in the lead, with Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital and JP Morgan participating as well. That number could go up too, it noted.</p>

<p>The IPO is projected to be finalized by May 2012.</p>

<p>Between now and then people will be going over Facebook&#8217;s filing with a fine-toothed comb looking for the smallest overlooked detail about how the company plans to make money in the future, what might affect those plans, and what its margins are today as it serves its 800 million (and counting) users.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/" title="Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion">Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-birth-certificate/" title="Facebook's Birth Certificate">Facebook's Birth Certificate</a></li>
<li><a href="http://paidcontent.org/article/419-google-facebook-twitter-execs-grilled-by-uk-mps-on-privacy/" title="Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy">Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy</a></li>
</ul>

									]]>
			</content>
			
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="1216" scheme="http://paidcontent.org/topics" label="Groupon"/>
							
									<category term="1109" scheme="http://paidcontent.org/topics" label="Zynga"/>
							
						</entry>
	
		<entry>
			<title>Facebook&#39;s Birth Certificate</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebooks-birth-certificate/"/>
			<id>tag:contentnext.com,2012-01-31:article/419-facebooks-birth-certificate</id>
			<published>2012-01-31T20:34:00Z</published>
			<updated>2012-01-31T20:51:01Z</updated>
			<author>
				<name>Alexis Madrigal</name>
				<uri>http://paidcontent.org/member/23770/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Facebook is widely expected to <a href="http://online.wsj.com/article/SB10001424052970204573704577187062821038498.html">go public in the very near future</a> with a valuation north of $75 billion. It&#8217;s a moment that tech watchers have been anticipating for half a decade and will make millionaires out of many, many <a href="http://news.cnet.com/8301-13577_3-20030423-36.html">early Facebook employees</a>.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Facebook is widely expected to <a href="http://online.wsj.com/article/SB10001424052970204573704577187062821038498.html">go public in the very near future</a> with a valuation north of $75 billion. It&#8217;s a moment that tech watchers have been anticipating for half a decade and will make millionaires out of many, many <a href="http://news.cnet.com/8301-13577_3-20030423-36.html">early Facebook employees</a>.
</p><p>But let&#8217;s go back to May of 2005, less than a year after Facebook was initially incorporated. TheFacebook, as it was then called, measured its users in the low millions. Only American college students could be on the network, and they were verified through their college e-mail addresses. TheFacebook had steamrolled <a href="http://www.thecrimson.com/article/2004/2/9/hundreds-register-for-new-facebook-website/">first through Harvard</a>, beginning in February of 2004. Here is Zuck&#8217;s first statement as the proprietor of The Facebook, which he gave to the Harvard Crimson&#8217;s <a href="http://www.davispolk.com/lawyers/alan-tabak/">Alan Tabak</a>, now a lawyer at the high-powered firm, Davis Polk:</p>

<blockquote><p>&#8220;Everyone&#8217;s been talking a lot about a universal face book within Harvard,&#8221; Zuckerberg said. &#8220;I think it&#8217;s kind of silly that it would take the University a couple of years to get around to it. I can <br />
do it better than they can, and I can do it in a week.&#8221; </p>

<p>As of yesterday afternoon, Zuckerberg said over 650 students had registered use thefacebook.com. He said that he anticipated that 900 students would have joined the site by this morning.</p></blockquote>

<p>After conquering the Crimson, Zuckerberg expanded the operation to a group of Ivy League schools, and then on to the rest of the country&#8217;s colleges. It was clear big things lay on the horizon for the company, but I&#8217;m not sure anyone could have seen quite how big.</p>

<p>It was that spring that &#8216;TheFacebook, Inc&#8217; made its first filing with the Securities and Exchange Commission. <a href="http://cdn.theatlantic.com/static/mt/assets/science/9999999997-05-023236">The paperwork</a> details a $6,840 investment from a time when only Mark Zuckerberg, Sean Parker, and Dustin Moskovitz had to be listed on the startup-friendly Rule 506 Form D. Zuckerberg appears to have used is personal phone number for the filing, a New York 914 number rather than the Palo Alto landline used after August of 2005. The legal fees associated with the filing were a mere $50. And it&#8217;s signed by the very hand of Zuckerberg. </p>

<p><br/></p><p><br/></p><p><img height="177" width="615" style="" class="mt-image-none" src="http://cdn.theatlantic.com/static/mt/assets/science/Facebookfirstfiling.jpg" alt="Facebookfirstfiling.jpg"/></p><p><br/></p>

<p>In the next filing (<a href="http://cdn.theatlantic.com/static/mt/assets/science/9999999997-05-024304.pdf">dated a week later</a>) things get really interesting. We see the $12.7 million investment that came in from <a href="http://www.accel.com/">Accel Partners</a>. <a href="http://www.newyorker.com/reporting/2011/11/28/111128fa_fact_packer">Peter Thiel&#8217;s</a> name also shows up on the SEC filing as a director and beneficial owner of the company. Still, I find the first filing the most compelling. If Facebook is now the 800-pound gorilla of the social space, this is that monster&#8217;s birth certificate. </p>

<p><a title="View Facebook's First SEC Filing on Scribd" href="http://www.scribd.com/doc/79980610" style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block; text-decoration: underline;">Facebook&#8217;s First SEC Filing</a></p><p><iframe class="scribd_iframe_embed" src="http://www.scribd.com/embeds/79980610/content?start_page=1&amp;view_mode=list" data-auto-height="true" data-aspect-ratio="" scrolling="no" id="doc_53221" width="100%" height="600" frameborder="0"></p><p></iframe>
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/" title="Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion">Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion</a></li>
<li><a href="http://paidcontent.org/article/419-can-facebook-control-5-percent-of-online-advertising-by-end-of-2012/" title="Can Facebook Control 5 Percent Of Online Advertising By End Of 2012?">Can Facebook Control 5 Percent Of Online Advertising By End Of 2012?</a></li>
</ul>

									]]>
			</content>
			
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="726" scheme="http://paidcontent.org/topics" label="Community"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
						</entry>
	
		<entry>
			<title>Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/"/>
			<id>tag:contentnext.com,2012-01-31:article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al</id>
			<published>2012-01-31T17:33:43Z</published>
			<updated>2012-01-31T21:01:45Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>It remains to be seen whether all social networks can be profitable on advertising alone&#8212;and crucially what formats will work best alongside people&#8217;s communications with each other&#8212;but for now we are at least seeing some big growth in the space.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>It remains to be seen whether all social networks can be profitable on advertising alone&#8212;and crucially what formats will work best alongside people&#8217;s communications with each other&#8212;but for now we are at least seeing some big growth in the space.
</p><p>In 2011, Twitter&#8217;s advertising revenues grew 233 percent, and LinkedIn&#8217;s sales were up 95 percent, and both are set to see more growth in the years ahead.</p>

<p>Meanwhile, just days before an expected IPO, Facebook has solidified its lead in online display advertising not just in social networking, but over all online properties.</p>

<p>According to figures out from <a href="http://www.emarketer.com/PressRelease.aspx?R=1008806" title="eMarketer">eMarketer</a> today, Twitter&#8217;s revenue from advertising was a mere $139.5 million in 2011, but that was actually up by 233 percent over 2010. The analysts believe that international growth will further push that number up to $259.9 million this year, a rise of 83 percent.</p>

<p>Meanwhile, LinkedIn (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=LNKD" class="ticker" title="LNKD">NYSE: LNKD</a>) actually rounded off 2011 with more ad revenues than Twitter, with $154.6 million in sales. But it will see much more modest growth in the years ahead, with that figure only going up by 46 percent in 2012 to $226 million. At the moment, LinkedIn is proving to have the bigger international profile when it comes to advertising, with some 32 percent of its ad revenues expected to come from outside the U.S. in 2012, versus only 10 percent for Twitter.&nbsp; (Full tables with forecasts at the bottom of this post.)</p>

<p>Today, Twitter has some 300 million users compared to 135 million for LinkedIn, and so some of Twitter&#8217;s gain on LinkedIn in ad revenues could be down to that simple fact. User numbers may, too, be the reason why Twitter will widen its lead in ad sales even further in the years ahead. By 2014, eMarketer predicts that Twitter will have annual ad revenues of $540 million compared to $405.6 million for LinkedIn.</p>

<p>But even those 2014 figures are still less than 15 percent of what Facebook makes in advertising at the moment, mostly in the form of display ads. </p>

<p>With revenues of $4.27 billion in 2011, $3.8 billion of that from advertising (eMarketer via <a href="http://online.wsj.com/article/SB10001424052970203920204577193361056850828.html" title="WSJ">WSJ</a>) Facebook is the social network to beat. That&#8217;s true today but also in the future, as it only continues to enhance the services it offers to engage users and keep them on the site for longer. </p>

<p>According to figures provided by comScore (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=SCOR" class="ticker" title="SCOR">NSDQ: SCOR</a>), in the U.S. Facebook has widened its lead in the display-advertising market in 2011. It now has 27.9 percent of that market, compared to 21 percent the year before. That puts Facebook significantly ahead of the next-closest competitor in display, Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), which is at 11 percent. The full figures for 2011 and how they compare to 2010:</p>

<p><img src="http://paidcontent.org/images/editorial/_original/comscore-display-advertising-u.s.-2011-o.png" /></p>

<p>In UK figures provided also by comScore, the leadership of Facebook is even stronger, with over 30 percent of the market for 2011 in terms of revenues.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/comscore-display-advertising-uk-2011-o.png" /></p>

<p>With Twitter and LinkedIn, it is too early to tell which social network&#8217;s ad formats prove to be the more engaging, and more attractive to media buyers. </p>

<p>For now, it looks like LinkedIn is winning at least in the variety stakes, with ads to match particular user profiles and professions, as well as different areas for placement (Profile Page, Home Page, Inbox, Search Results Page and Groups) and formats. Twitter has, so far, concentrated on promoted tweets as the basis of their advertising. LinkedIn offers advertisers a self-serve platform for its services. Twitter launched its ad platform only in November 2011, and as eMarketer analyst Debra Aho Wiliamson puts it, the &#8220;verdict is still out&#8221; on whether it will gain traction.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/twitter-ad-revenues-o.gif" /><br />
<img src="http://paidcontent.org/images/editorial/_original/linkedin-ad-revenues-o.gif" />
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-whats-coming-in-2012-digital-advertising-up-close-and-personal/" title="What's Coming In 2012: Digital Advertising, Up Close And Personal">What's Coming In 2012: Digital Advertising, Up Close And Personal</a></li>
<li><a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine">2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine</a></li>
<li><a href="http://paidcontent.org/article/419-yahoo-in-context-its-declining-while-the-online-ad-market-keeps-growing/" title="Yahoo In Context: It's Declining While The Online Ad Market Keeps Growing">Yahoo In Context: It's Declining While The Online Ad Market Keeps Growing</a></li>
<li><a href="http://paidcontent.org/article/419-is-this-the-year-ad-spending-online-tops-print/" title="Is This The Year Ad Spending Online Tops Print?">Is This The Year Ad Spending Online Tops Print?</a></li>
<li><a href="http://paidcontent.org/article/419-interactive-tv-advertising-not-huge-now-will-this-be-the-year-it-grows/" title="Interactive TV Advertising: Not Huge Now, Will This Be The Year It Grows?">Interactive TV Advertising: Not Huge Now, Will This Be The Year It Grows?</a></li>
<li><a href="http://paidcontent.org/article/419-highlights-of-2011-the-year-in-advertising-by-the-numbers/" title="Highlights Of 2011: The Year In Advertising, By The Numbers">Highlights Of 2011: The Year In Advertising, By The Numbers</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1069" scheme="http://paidcontent.org/topics" label="Features"/>
							
									<category term="1139" scheme="http://paidcontent.org/topics" label="Tweets"/>
							
									<category term="746" scheme="http://paidcontent.org/topics" label="Search"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="1108" scheme="http://paidcontent.org/topics" label="LinkedIn"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
									<category term="1033" scheme="http://paidcontent.org/topics" label="Yahoo"/>
							
							
						</entry>
	
		<entry>
			<title>Google, Facebook, Twitter Execs Grilled By UK MPs On Privacy</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-google-facebook-twitter-execs-grilled-by-uk-mps-on-privacy/"/>
			<id>tag:contentnext.com,2012-01-30:article/419-google-facebook-twitter-execs-grilled-by-uk-mps-on-privacy</id>
			<published>2012-01-30T16:05:29Z</published>
			<updated>2012-01-30T19:20:30Z</updated>
			<author>
				<name>Robert Andrews</name>
				<uri>http://paidcontent.org/member/47/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) executives got a rough ride from a House Of Commons committee on Monday, when they declined to systemically filter law-breaking web pages from search results.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) executives got a rough ride from a House Of Commons committee on Monday, when they declined to systemically filter law-breaking web pages from search results.
</p><p>Associate general counsel Daphne Keller told the joint committee on privacy and injunctions that algorithmic filtering-out was technically feasible but not on the company&#8217;s policy agenda.</p>

<p>The committee had called Keller along with with public policy heads from Google (DJ Collins), Facebook (Lord Allan of Hallam) and Twitter (Colin Crowell).</p>

<p><iframe src='/image/slideshow/silicon-valley-in-uk-parliament/' scrolling='no' frameborder='0' id='set_302_frame' style='width: 100%;'></p><p><a href='/image/set/silicon-valley-in-uk-parliament' title='Silicon Valley in UK Parliament'>Silicon Valley in UK Parliament</a></p><p></iframe></p><p><br /></p>

<p>MPs drew their attention to the case of Max Mosley, who won a privacy claim against News Of The World for having filmed him engaged in sex and who now spends his time filing individual takedown requests so that Google can hide remaining privacy-breaching web pages from search.</p>

<blockquote><p>&#8220;If a user has their privacy violated by a web page and wants that removed, we have a public-facing web form that they use to let us know,&#8221; Keller protested to the MPs. &#8220;We have removed hundreds of URLs in this case so that they no longer show up in our search results.&#8221;</p></blockquote>

<p>But MPs believe that, since the privacy ruling has already been made, Google should act pre-emptively to automatically remove such results - for example, using image matching. &#8220;Is it technically feasible?,&#8221; one asked.</p>

<blockquote><p>&#8220;I don&#8217;t dispute that someone could perhaps build something,&#8221; Keller conceded. &#8220;My policy point is that doing so is a bad idea. Ultimately, the decision about whether something is unlawful is something for a human to make.&#8221;</p></blockquote>

<p>Despite Collins&#8217; softer approach, Keller&#8217;s testimony was like a red rag to the committee&#8217;s bulls, many of whom regard such matters in aggressive, black and white terms.</p>

<blockquote><p>&#8220;I found your earlier answers totally unconvincing,&#8221; one, Ben Bradshaw MP, told Keller. &#8220;99.9 percent of people find that illegal content through your search engine and you could stop that from happening.&#8221;</p></blockquote>

<blockquote><p>Another, Lord Myners, told Collins: &#8220;You&#8217;re not answering my question, and that&#8217;s been a practice of you and your colleague throughout this discussion.&#8221;</p></blockquote>

<blockquote><p>Brian Mawhinney MP told Keller: &#8220;You&#8217;re extremely hard to pin down - you have ducking and diving down to a fine art and I congratulate you.&#8221;</p></blockquote>

<blockquote class="twitter-tweet"><p>Embarrassing rudeness to Google, Twitter &amp; Fb and ignorance about internet from my &#8216;colleagues&#8217; on joint privacy &amp; injunctions cttee today</p>&mdash; Martin Horwood (@MartinChelt) <a href="https://twitter.com/MartinChelt/status/164005613561585664" data-datetime="2012-01-30T15:22:40+00:00">January 30, 2012</a></blockquote>
<script src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

<p>The hearing came a week after the companies also testified to the parallel Leveson inquiry in to press standards, and follows the publication of Google&#8217;s new privacy policy and Twitter&#8217;s censorship policy, in which it has made a new commitment to filter out tweets according to the laws of lands in which it operates.</p>

<p>With that policy in place, Twitter&#8217;s Crowell, too, was looked toward by committee members to commit to automatic pre-filtering of illegal material. Ben Bradshaw asked him if the policy meant Twitter would strip out UK tweets that broke a privacy injunction, as in the case of Ryan Giggs last year.</p>

<p>But Crowell, though he made a general commitment to this, tip-toed around the area, saying that Twitter would work through such issues on a &#8220;case-by-case basis&#8221;: &#8220;It&#8217;s a hypothetical. I wouldn&#8217;t know how to answer that. A determination would need to be made about the applicability of that to services such as our own.&#8221;</p>

<p>Bradshaw&#8217;s point was that, in the Giggs case, an injunction was delivered to newspapers and should be served on Twitter in the same way.
</p>
									]]>
			</content>
			
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="1141" scheme="http://paidcontent.org/topics" label="Privacy"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="898" scheme="http://paidcontent.org/topics" label="Google"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
							
						</entry>
	
		<entry>
			<title>Report: Facebook IPO Could Arrive Next Week With Hopes Of $10 Billion</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion/"/>
			<id>tag:contentnext.com,2012-01-27:article/419-report-facebook-ipo-could-arrive-next-week-with-hopes-of-10-billion</id>
			<published>2012-01-27T19:08:54Z</published>
			<updated>2012-01-27T19:12:55Z</updated>
			<author>
				<name>Tom Krazit</name>
				<uri>http://paidcontent.org/member/18417/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>The long-awaited Facebook IPO might arrive as soon as next week, according to a new report. When the company does get around to filing the paperwork it will set Facebook on the path toward one of the richest IPOs in tech history.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>The long-awaited Facebook IPO might arrive as soon as next week, according to a new report. When the company does get around to filing the paperwork it will set Facebook on the path toward one of the richest IPOs in tech history.
</p><p>Facebook could raise as much as $10 billion when shares of its stock are sold to the public, and the usual &#8220;people familiar with the matter&#8221; are telling the <a href="http://online.wsj.com/article_email/SB10001424052970204573704577187062821038498-lMyQjAxMTAyMDIwNzEyNDcyWj.html" title="Wall Street Journal">Wall Street Journal</a> that the first step could come by next Wednesday. It is believed to be preparing an offer that values the company between $75 billion and $100 billion, according to the report.</p>

<p>That will also allow the public to get a peek at Facebook&#8217;s financial statements, a chance to see how effectively the social giant is making money on its 800 million users.&nbsp; Facebook is believed to be solidly profitable, unlike a few other tech IPOs from last year, and is increasingly making Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) nervous with its ability to provide extremely targeted data to advertisers.</p>


											<p><strong>Related</strong></p>
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<li><a href="http://paidcontent.org/article/419-what-a-facebook-deal-with-vevo-could-unleash/" title="What A Facebook Deal With Vevo Could Unleash">What A Facebook Deal With Vevo Could Unleash</a></li>
<li><a href="http://paidcontent.org/article/419-can-facebook-control-5-percent-of-online-advertising-by-end-of-2012/" title="Can Facebook Control 5 Percent Of Online Advertising By End Of 2012?">Can Facebook Control 5 Percent Of Online Advertising By End Of 2012?</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-timeline-is-here-for-all-creepy-but-beautiful/" title="Facebook Timeline Is Here For All: Creepy But Beautiful">Facebook Timeline Is Here For All: Creepy But Beautiful</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-readying-mobile-ad-push-for-2012-right-around-the-expected-ipo/" title="Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO">Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO</a></li>
</ul>

									]]>
			</content>
			
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
						</entry>
	
		<entry>
			<title>Virtual Pet Owners Sue Google Over Lost &#39;Gold&#39;</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-virtual-pet-owners-sue-google-over-lost-gold/"/>
			<id>tag:contentnext.com,2012-01-27:article/419-virtual-pet-owners-sue-google-over-lost-gold</id>
			<published>2012-01-27T14:34:21Z</published>
			<updated>2012-01-30T03:48:22Z</updated>
			<author>
				<name>Jeff Roberts</name>
				<uri>http://paidcontent.org/member/21598/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Angry game owners are demanding Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) compensate them for wiping out their investments in online pets. The loss of a virtual kitty may seem like a trifle to some but, in the big picture, the new lawsuit could be a bellwether for how the law treats what is an exploding market in online goods and currencies.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Angry game owners are demanding Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) compensate them for wiping out their investments in online pets. The loss of a virtual kitty may seem like a trifle to some but, in the big picture, the new lawsuit could be a bellwether for how the law treats what is an exploding market in online goods and currencies.
</p><p>For those more familiar with real-life Rovers, the new legal dispute turns on <a href="http://superpokepets.com/spp/create" title="SuperPoke Pets">SuperPoke Pets</a>, an online game in which players chose a pet (dog, frog, sheep, etc) and then care for it in an online realm with other pet owners. Many owners purchased &#8220;gold&#8221; using real life money and used the gold to buy items in the game. </p>

<p>That gold is now worthless after Google, which had purchased the game from a company called Slide, decided to axe it last summer. (As of March 6, the website will be gone though players will be able to load their pet onto a <a href="http://support.google.com/spp/bin/answer.py?hl=en&amp;topic=1378525&amp;answer=1672578" title="display case">display case</a> of sorts).</p>

<p>As Liz Gannes of All Things D <a href="http://allthingsd.com/20111018/law-firm-wont-pursue-superpoke-pets-shutdown-class-action-suit-against-google/" title="reported">reported</a> last fall, furious players were seeking a law firm to bring a class action against Google. They appear to have found one and filed a lawsuit in late December. The case was transferred to federal court in San Jose this week.</p>

<p>The lead plaintiff is Christalee Abreu who says she spent more than a thousand dollars on virtual gold. The lawsuit purports to represent thousands of people across the US in two categories: those who purchased gold and those who subscribed to a $4.95/month VIP subscription.</p>

<p>As Gannes has noted, Google is likely to rely on a license agreement common to games that effectively tells users &#8220;them&#8217;s the breaks&#8221; if the game goes away.</p>

<p>The plaintiffs, however, have a sympathetic case. According to the lawsuit, some players rushed to stockpile virtual items after the company announced that it would stop offering gold-based transactions. These players hoped to sell their items on a secondary market (basically, a Craigslist of sorts for items like virtual doggy bones) but those hopes were dashed when Google said it would kibosh the game.</p>

<p>Disputes over SuperPoke gold and other online currencies were once the stuff of futurists and law school hypotheticals. But now it&#8217;s big business&#8212;observers suspect the sale of virtual goods counts for a healthy portion of Faceook&#8217;s revenue. And Forbes magazine recently asked if the social network should be considered <a href="http://www.forbes.com/sites/georgeanders/2012/01/20/is-facebook-a-central-bank-too/" title="a central bank">a central bank</a> in light of the spread of Facebook Credits.</p>

<p>The SuperPoke lawsuit may help define the legal rules of the road for virtual currencies. </p>

<font size="2"><a href="http://www.docstoc.com/docs/111528941/SuperPoke-Pets-State-complaint">SuperPoke Pets State complaint</a></font><br/><object id="_ds_111528941" name="_ds_111528941" width="630" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=111528941&amp;mem_id=7281&amp;doc_type=pdf&amp;fullscreen=0&amp;allowdownload=1" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object><script type="text/javascript">var docstoc_docid=&#8220;111528941&#8221;;var docstoc_title=&#8220;SuperPoke Pets State complaint&#8221;;var docstoc_urltitle=&#8220;SuperPoke Pets State complaint&#8221;;</script><script type="text/javascript" src="http://i.docstoccdn.com/js/check-flash.js"></script>
											<p><strong>Related</strong></p>
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<li><a href="http://paidcontent.org/article/419-slip-sliding-away-max-levchin-leaving-google-as-social-priorities-chang/" title="Slip-Sliding Away: Max Levchin Leaving Google As Social Priorities Change">Slip-Sliding Away: Max Levchin Leaving Google As Social Priorities Change</a></li>
<li><a href="http://paidcontent.org/article/419-google-buys-slide-in-social-networking-push/" title="Google Buys Slide In Social Networking Push">Google Buys Slide In Social Networking Push</a></li>
</ul>

									]]>
			</content>
			
									<category term="667" scheme="http://paidcontent.org/topics" label="Entertainment"/>
							
									<category term="670" scheme="http://paidcontent.org/topics" label="Games"/>
							
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
						</entry>
	
		<entry>
			<title>Facebook&#39;s Latest Scoop: Thousands Of Journalists Use Subscribe Feature</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebooks-latest-scoop-thousands-of-journalists-use-subscribe-feature/"/>
			<id>tag:contentnext.com,2012-01-25:article/419-facebooks-latest-scoop-thousands-of-journalists-use-subscribe-feature</id>
			<published>2012-01-25T23:30:35Z</published>
			<updated>2012-01-25T23:57:36Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>For many news sites, Facebook has become one of the biggest sources of referral traffic to its stories, and today the social network revealed some numbers that underscored how it is continuing to build up its cred as a news aggregator: it says it now has &#8220;thousands&#8221; of journalists using its new Subscribe feature, an enhanced, Twitter-like broadcasting service that lets those journalists engage with readers, highlight news and publicize their work, without the need for the reader and journalist to mutually follow each other. 
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>For many news sites, Facebook has become one of the biggest sources of referral traffic to its stories, and today the social network revealed some numbers that underscored how it is continuing to build up its cred as a news aggregator: it says it now has &#8220;thousands&#8221; of journalists using its new Subscribe feature, an enhanced, Twitter-like broadcasting service that lets those journalists engage with readers, highlight news and publicize their work, without the need for the reader and journalist to mutually follow each other. 
</p><p>But before you think that Subscribe has been taken over by those working in the world of blogs and digital-first news sites, think again. According to a <a href="http://www.facebook.com/notes/facebook-journalists/how-journalists-are-using-facebook-subscribe/352565928088761" title="blog post">blog post</a> today, Facebook said that among those early adopters, the highest concentration of journalists using Subscribe were from two of the most old-school publications: Washington Post (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=WPO" class="ticker" title="WPO">NYSE: WPO</a>) has more than 90 journalists using it; and The New York Times (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NYT" class="ticker" title="NYT">NYSE: NYT</a>) has over 50. </p>

<p><a href="http://techcrunch.com/2012/01/25/facebook-subscribe-journalists/" title="Anecdotally">Anecdotally</a>, people have said they are finding a lot more people are following them on Facebook than they are on Twitter. That&#8217;s not so strange: although Twitter has become the default place that many journalists hang out online today, Facebook is fundamentally a much bigger site: 300 million versus 800 million subscribers, respectively. The only surprise, given how much traffic Facebook generates for some sites, is that more journalists aren&#8217;t using it as a way to reach readers, or would-be readers. That might be because some see Facebook as a down-time activity, compared to Twitter as a work-time network. (I know I do.) </p>

<p>So Facebook may have a roster of thousands of engaged journalists to canvas, but it took a selection of only 25 to draw some early conclusions on how journalists are using Subscribe. Does that sound like a small number? &#8220;When it comes to qualitative, it&#8217;s enough to draw conclusions and see patterns,&#8221; Vadim Lavrusik, Journalist Program Manager &amp; Betsy Cameron, Data Analyst, wrote in response to one person&#8217;s questioning of the sample size.</p>

<p>Some early take-aways from that group of 25. There will likely be some that have seen significantly different results.</p>

<p>&#8212;The average journalist has seen a 320 percent increase in his/her traffic since November 2011.<br />&#8212;People are finding journalists via friends in their news feeds (for example, through shared articles); Facebook search and Facebook&#8217;s own recommended subscriber list.&nbsp; <br />&#8212;Links are good: 62 percent of posts contain a link, and when posts have some analysis with the link, that triggers 20 percent more referral traffic.<br />&#8212;Questions are better: 25 percent of posts ask a question, and Facebook said that an earlier study that found posts that asked for input received 64 percent more responses from users&#8212;although those might not be click-throughs and just simple likes.<br />&#8212;Self-promotion actually works: 30 percent of posts contain calls to action such as &#8220;read this.&#8221; Those receive 37 percent more engagement than those without the self-promotion. Asking reads to comment also got good responses: between two and three times more engagement from subscribers.<br />&#8212;So do photos: surprisingly only 12 percent of posts were based around photos&#8212;but those that used them got 50 percent more &#8220;likes.&#8221; Again, no detail on how that actually translated into people reading those posts, if those posts also included links to stories.<br />&#8212;Videos are equally less common&#8212;only 13 percent of posts feature them. 
</p>
											<p><strong>Related</strong></p>
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<li><a href="http://paidcontent.org/article/419-can-huffpo-pull-off-a-double-whammy-with-a-new-video-news-service/" title="Updated: Can HuffPo Pull Off A Double Whammy With A New Video News Service?">Updated: Can HuffPo Pull Off A Double Whammy With A New Video News Service?</a></li>
<li><a href="http://paidcontent.org/article/419-what-a-facebook-deal-with-vevo-could-unleash/" title="What A Facebook Deal With Vevo Could Unleash">What A Facebook Deal With Vevo Could Unleash</a></li>
<li><a href="http://paidcontent.org/article/419-social-media-gets-stickier-twittersummify-facebookapps-video-too/" title="Social Media Gets Stickier: Twitter/Summify; Facebook/Apps, Video Too?">Social Media Gets Stickier: Twitter/Summify; Facebook/Apps, Video Too?</a></li>
<li><a href="http://paidcontent.org/article/419-itn-expands-online-news-content-strategy-with-multi-platform-ad-sales/" title="ITN Unifying Ad Sales For Multi-Platform Video Syndication">ITN Unifying Ad Sales For Multi-Platform Video Syndication</a></li>
<li><a href="http://paidcontent.org/article/419-zynga-confirms-purchase-of-four-mobile-gaming-companies-in-last-six-mon/" title="Updated: Zynga Confirms Recent Purchases Of Four Mobile Gaming Companies">Updated: Zynga Confirms Recent Purchases Of Four Mobile Gaming Companies</a></li>
</ul>

									]]>
			</content>
			
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="703" scheme="http://paidcontent.org/topics" label="Magazines"/>
							
									<category term="704" scheme="http://paidcontent.org/topics" label="Newspapers"/>
							
									<category term="706" scheme="http://paidcontent.org/topics" label="Online News"/>
							
									<category term="709" scheme="http://paidcontent.org/topics" label="TV"/>
							
									<category term="713" scheme="http://paidcontent.org/topics" label="Broadcast"/>
							
									<category term="746" scheme="http://paidcontent.org/topics" label="Search"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="728" scheme="http://paidcontent.org/topics" label="News Sharing"/>
							
									<category term="729" scheme="http://paidcontent.org/topics" label="Photo Sharing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="961" scheme="http://paidcontent.org/topics" label="New York Times"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
									<category term="1031" scheme="http://paidcontent.org/topics" label="Washington Post"/>
							
							
						</entry>
	
		<entry>
			<title>Update 2: Privacy Alert: O2 Fixes Hole That Shared Users&#39; Phone Numbers</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-privacy-alert-o2-accused-of-sharing-mobile-surfers-phone-numbers/"/>
			<id>tag:contentnext.com,2012-01-25:article/419-privacy-alert-o2-accused-of-sharing-mobile-surfers-phone-numbers</id>
			<published>2012-01-25T15:36:53Z</published>
			<updated>2012-01-26T10:11:54Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p><strong>Update</strong>: Mobile operator O2 says that as of 2pm Wednesday, it has fixed the part of its mobile web browsing service that was reporting mobile phone users&#8217; telephone numbers to websites they visited via O2&#8217;s mobile data network. 
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p><strong>Update</strong>: Mobile operator O2 says that as of 2pm Wednesday, it has fixed the part of its mobile web browsing service that was reporting mobile phone users&#8217; telephone numbers to websites they visited via O2&#8217;s mobile data network. 
</p><p>In a <a href="http://blog.o2.co.uk/home/2012/01/o2-mobile-numbers-and-web-browsing.html" title="blog post">blog post</a>, it said that the phone numbers were revealed between January 10 and January 25, as a result of &#8220;technical changes&#8221; around &#8220;routine maintenance&#8221;. It was unintended. </p>

<p>The company further writes: &#8220;In addition to the usual trusted partners, there has been the potential for disclosure of customers’ mobile phone numbers to further website owners.&#8221; Who are the &#8216;usual trusted partners&#8217;? O2 writes that normally it shares numbers &#8220;only where absolutely required by trusted partners who work with us on age verification, premium content billing, such as for downloads, and O2&#8217;s own services,&#8221; but does not give more details of who exactly goes on that whitelist. It should be noted that this is also in contradiction to O2&#8217;s initial response, which implied that showing the number was a normal part of mobile web browsing, not an accident.</p>

<p>More disclosure about the whitelist, and how O2 shares a user&#8217;s phone number, may be forthcoming: O2 says it is now in conversation with the Information Commissioners&#8217; Office and Ofcom about the matter&#8212;not to mention the many angry customers criticizing O2 on Wednesday and threatening to take their mobile business elsewhere.</p>

<p><em>Original post with more details on this story follows below.</em></p>

<p>O2, one of the largest mobile operators in Europe, says that it is currently investigating accusations that it is sharing its customers&#8217; mobile numbers with websites visited while surfing on the carrier&#8217;s mobile data network. </p>

<p>The allegations come amid growing questions of user privacy both at the regulatory level and among consumers. These have been highlighted over a spread of cases in the last several months covering companies like Facebook, Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) and Microsoft (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=MSFT" class="ticker" title="MSFT">NSDQ: MSFT</a>)&#8212;as well as device makers and carriers working with companies like CarrierIQ.</p>

<p>And they come on the same day that the European Commission <a href="http://www.reuters.com/article/2012/01/25/us-eu-dataprivacy-idUSTRE80O0X220120125?feedType=RSS&amp;feedName=internetNews" title="published">published</a> new rules regarding data privacy, with companies that breach them facing fines of up to two percent of their annual turnover. These laws would only come into effect at the end of 2013.</p>

<p>Lewis Peckover, a web systems administrator in London, <a href="ways to verify a user is on a mobile device/network. Didn't expect it to be quite so easy on @O2" title="said">said</a> he first noticed the issue on Tuesday, when he was looking for &#8220;ways to verify a user is on a mobile device/network&#8221; and discovered that his own mobile number was getting displayed as part of the header information.</p>

<p>To explore the matter further, he set up a <a href="http://lew.io/headers.php" title="simple website">simple website</a>&#8212;which he named &#8220;Bad O2!&#8221;&#8212;that lets users see what information gets passed to that website when they visit it from a particular browser or device. He encouraged users to try this out for themselves.</p>

<p>The result has been that several other people have also found their number appearing on the site&#8212;meaning that there is a likelihood that others going to other websites via O2&#8217;s wireless data network were also having their numbers revealed elsewhere.</p>

<p>From what we have seen so far, it looks like it is only O2 and not other carriers sharing this information: a test with Three and another via T-Mobile did not yield our numbers showing up on the diagnostic page. O2 also runs MNVO services, such as its own GiffGaff, and Tesco Mobile, and their customers are also having their numbers revealed.</p>

<p>Nor does it seem like O2 numbers appear every time: some have pointed out that their O2 numbers are not coming up in their own <a href="https://twitter.com/#!/c_davies/status/162118014421041152" title="header tests">header tests</a>. </p>

<p>However, when it does pick up the number, it appears to be happening on both iPhones as well as Android devices. Here&#8217;s one example that we were sent:</p>

<p><img src="http://paidcontent.org/images/editorial/_original/o2-number-sharing-o.jpg" />
</p><p>Chris Welton, who sent us the image, noted that he turned off his WiFi before testing, so this does not seem to be connected to the <a href="http://paidcontent.org/article/419-o2-building-free-wifi-network-across-the-uk.-whats-the-catch/" title="free WiFi network">free WiFi network</a> that O2 rolled out last year, as part of its push into mobile advertising. </p>

<p>O2 last night told Peckover, via <a href="https://twitter.com/#!/O2/status/161872584634408960" title="Twitter">Twitter</a>, &#8220;The mobile number in the HTML is linked to how the site determines that you&#8217;re browsing from a mobile device.&#8221; </p>

<p>But it&#8217;s not clear, still, why it would be that the numbers are appearing inconsistently, and why O2 is sharing this information when our tests with other mobile operators have not come up with the same results: that implies there are ways around this that O2 is not taking. We have reached out to O2 for a response to these allegations, and, if they prove accurate&#8212;why it is that this information is getting passed along, and for what purpose.</p>

<p>Alexander Hanff, a privacy advocate and consultant for Privacy International, tells paidContent that sharing information like a telephone number to indicate mobile browsing could be a &#8220;very serious breach&#8221; of privacy regulations: </p>

<p>&#8220;It indicates a fundamental lack of understanding of privacy and security within O2 as there are many other ways to illustrate that there is a mobile device accessing a web site (such as the User Agent string),&#8221; he told us via email. &#8220;This is a serious breach with potentially serious consequences with regards to the harvesting of these numbers and phishing (for example if you open an email on your device with images embedded, the second you open that email, your phone number will be sent to the server where those images are being sent from).&#8221;</p>

<p>He also points out that there could be a &#8220;real cost to consumers&#8221;: &#8220;I am currently overseas, if my cell number is harvested and I receive cold calls whilst overseas I have to pay roaming charges for those calls - furthermore, O2 would profit from those calls (if I were an O2 customer) and the numbers could be significant.&#8221;</p>

<p>Perhaps most damagingly he notes: &#8220;This is a clear breach of the Data Protection Act as phone numbers are classed as PII for legitimate reasons, it is also likely that this is a breach of Privacy and Electronic Communications (EC Directive) Regulations and possibly a criminal breach of Regulation of Investigatory Powers Act (RIPA) which since early 2011 has carried penalties for &#8220;unintentional&#8221; interception of communications.&#8221;</p>

<p>Given that O2 in the UK alone has several million customers this could become a very serious issue indeed. If you are an O2 customer outside the UK, please let us know if you are also finding similar results with your own test. You can use the link <a href="http://lew.io/headers.php" title="here">here</a> to try it out.</p>

<p>The UK&#8217;s Information Commissioner&#8217;s Office (ICO) has told paidContent that a mobile number on its own is not a data breach per se, but when it is coupled with any other identifying information it can constitute a data breach. Also, she pointed out that because O2 is apparently revealing its own customers&#8217; numbers, that raises questions. The ICO also emailed a prepared statement on the situation:</p>

<blockquote><p>“Keeping people’s personal information secure is a fundamental principle that sits at the heart of the Data Protection Act and the Privacy and Electronic Communications Regulations. When people visit a website via their mobile phone they would not expect their number to be made available to that website. We will now speak to O2 to remind them of their data breach notification obligations, and to better understand what has happened, before we decide how to proceed.”&nbsp; </p></blockquote>

<p>Meanwhile <a href="http://thenextweb.com/mobile/2012/01/25/how-o2-could-unwittingly-help-spammers-conduct-a-nasty-phishing-campaign/" title="TNW">TNW</a> takes a look at how this one bit of information&#8212;your number&#8212;can subsequently then get used for more serious activities, such as phishing and other spam practices.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://moconews.net/article/419-o2-building-free-wifi-network-across-the-uk.-whats-the-catch/" title="O2 Building Free WiFi Network Across The UK. What's The Catch?">O2 Building Free WiFi Network Across The UK. What's The Catch?</a></li>
<li><a href="http://paidcontent.org/article/419-googles-new-privacy-policy-aimed-at-integrating-youtube/" title="Google's New Privacy Policy Aims At Integrating YouTube">Google's New Privacy Policy Aims At Integrating YouTube</a></li>
<li><a href="http://paidcontent.org/article/419-day-after-piracy-bill-collapses-feds-shut-down-megaupload1/" title="Updated: Day After Piracy Bill Collapses, Feds Shut Down Megaupload">Updated: Day After Piracy Bill Collapses, Feds Shut Down Megaupload</a></li>
<li><a href="http://paidcontent.org/article/419-did-google-go-too-far-mixing-social-and-search/" title="Did Google Go Too Far Mixing Social And Search?">Did Google Go Too Far Mixing Social And Search?</a></li>
<li><a href="http://paidcontent.org/article/419-whats-coming-in-2012-digital-advertising-up-close-and-personal/" title="What's Coming In 2012: Digital Advertising, Up Close And Personal">What's Coming In 2012: Digital Advertising, Up Close And Personal</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-timeline-and-ads-real-estate-for-the-highest-bidder/" title="Updated: Facebook Timeline And Ads: Real Estate For The Highest Bidder?">Updated: Facebook Timeline And Ads: Real Estate For The Highest Bidder?</a></li>
<li><a href="http://paidcontent.org/article/419-highlights-of-2011-a-year-of-tech-and-publishing-lawsuits-by-the-number/" title="Highlights Of 2011: A Year Of Tech And Publishing Lawsuits, By The Numbers">Highlights Of 2011: A Year Of Tech And Publishing Lawsuits, By The Numbers</a></li>
<li><a href="http://paidcontent.org/article/419-for-users-outside-the-u.s.-facebook-is-getting-a-little-more-private/" title="For Users Outside The U.S., Facebook Is Getting A Little More Private">For Users Outside The U.S., Facebook Is Getting A Little More Private</a></li>
</ul>

									]]>
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						</entry>
	
		<entry>
			<title>Yahoo In Context: It&#39;s Declining While The Online Ad Market Keeps Growing</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-yahoo-in-context-its-declining-while-the-online-ad-market-keeps-growing/"/>
			<id>tag:contentnext.com,2012-01-25:article/419-yahoo-in-context-its-declining-while-the-online-ad-market-keeps-growing</id>
			<published>2012-01-25T00:29:14Z</published>
			<updated>2012-01-25T00:44:15Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Yahoo&#8217;s CEO Scott Thompson <a href="http://paidcontent.org/article/419-yahoo-revenues-slightly-down-investors-await-words-of-wisdom-from-new-c/" title="earlier today">earlier today</a> gave frank&#8212;and, the hopeful might say, encouraging&#8212;run down of the task ahead to turn around Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), an internet portal that was once on top of its game but has lately seem some serious decline. Some numbers provided today by eMarketer spell out the challenge in a different way.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Yahoo&#8217;s CEO Scott Thompson <a href="http://paidcontent.org/article/419-yahoo-revenues-slightly-down-investors-await-words-of-wisdom-from-new-c/" title="earlier today">earlier today</a> gave frank&#8212;and, the hopeful might say, encouraging&#8212;run down of the task ahead to turn around Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), an internet portal that was once on top of its game but has lately seem some serious decline. Some numbers provided today by eMarketer spell out the challenge in a different way.
</p><p><a href="http://www.emarketer.com" title="eMarketer">eMarketer</a> notes the overall U.S. online advertising market grew was worth $9.2 billion in Q4 2011. That&#8217;s growth 23.5 percent on the same quarter a year ago. The full-year growth rate was comparable: up 23 percent in 2011 to $32 billion from $26.04 billion in 2010. </p>

<p>However, Yahoo&#8217;s share of that is going in the other direction: as the market grew last year, Yahoo declined. It now has an 11 percent share of the market, compared to 13.3 percent in 2010. </p>

<p>Meanwhile, Google&#8217;s share of the online ad market is continuing to rise: it stood at 40.8 percent in 2011, compared to 38.5 percent in 2010. New entrants like Facebook are also nibbling into the pie: Facebook&#8217;s share was 6.4 percent in 2011, up from 4.6 percent in 2010. Overall, Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>) reported $36.53 billion in ad revenues for 2011, compared to $4.01 billion for Yahoo.</p>

<p>A lot of that strength for Google comes from search: Google now takes 75.9 percent of all search ad sales, dwarfing Yahoo&#8217;s 7.9 percent share (down from 10.7 percent a year ago). In financial terms that worked out to revenues of $1.85 billion for 2011, nearly halved from 2010&#8217;s revenues of $3.16 billion.</p>

<p>Meanwhile, display is a particularly tough spot for Yahoo. This had traditionally been where it claimed superiority over Google and others, but that&#8217;s not the case at all anymore: <a href="http://paidcontent.org/article/419-google-misses-earnings-expectations-during-q4-stock-down-9-percent/" title="Last week">Last week</a>, Google said it was on track to make $5 billion annually from display ads, more than twice the amount of sales that Yahoo reported for display in 2011: $2.16 billion. </p>

<p>Here&#8217;s what that means in terms of U.S. online display market share, according to eMarketer: Yahoo&#8217;s display share is now 13.1 percent in 2011, down from 14.4 percent in 2010. eMarketer estimates that Facebook is bigger, taking a 16.3 percent share in 2011 compared to 12.2 percent in 2010. In 2011, Google&#8217;s share of overall US display advertising revenues grew to 9.3 percent in 2011 from 8.6 percent in 2010, but if you consider Google&#8217;s forecast of $5 billion, it, too, will surpass Yahoo unless Thompson really manages to turn things around.
</p>
											<p><strong>Related</strong></p>
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<li><a href="http://paidcontent.org/article/419-yahoo-revenues-slightly-down-investors-await-words-of-wisdom-from-new-c/" title="Yahoo: Revenues Slightly Down, Investors Await Words Of Wisdom From New CEO">Yahoo: Revenues Slightly Down, Investors Await Words Of Wisdom From New CEO</a></li>
<li><a href="http://paidcontent.org/article/419-still-apples-world-37-million-iphones-15-million-ipads-destroy-estimate/" title="Updated: Still Apple's World: 37 Million iPhones, 15 Million iPads">Updated: Still Apple's World: 37 Million iPhones, 15 Million iPads</a></li>
<li><a href="http://paidcontent.org/article/419-google-misses-earnings-expectations-during-q4-stock-down-9-percent/" title="Updated: Google Miss Sends Stock Down 9 Percent On Cost-Per-Click Questions">Updated: Google Miss Sends Stock Down 9 Percent On Cost-Per-Click Questions</a></li>
</ul>

									]]>
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