On February 1, 2012 Facebook filed for its initial public offering. In the aftermath, people have questioned what the IPO will mean for Facebook users and advertisers, with the most significant issue concerning how Facebook will capitalize on its mobile market. Facebook recently reported that 425 million (more than half) of its monthly users are accessing the site from mobile devices. However, they have not yet begun monetizing their mobile market.  Industry experts have expressed concern over this lack of utilization of mobile possibilities, as it is a significant risk factor for the Facebook IPO.  As mobile usage continues to grow, it will become essential for Facebook to develop a way to monetize its mobile platform.

By Natalie Kleopfer, Account Coordinator

Looking to enhance your local and mobile advertising efforts? Learn how Google’s new updates can help.

On October 19th, Google unveiled several new mobile ad features and formats that will have a significant impact on pay-per-click (PPC) advertisers. Here’s a rundown of some of the key changes:

The distance between a user and an advertiser’s business is now factored into mobile search ad rankings. Local already accounts for 40% of mobile searches and the addition of proximity as a scoring factor will only cause that percentage to rise. Search Engine Land suggests that marketers start using  Location Extensions, a feature in AdWords that allows the addition of dynamic addresses to ads. While previous ads only allowed description lines and a URL, Location Extensions lets companies include their  names, addresses and phone numbers, too. This, combined with the new proximity factor, will help businesses drive more mobile traffic at a lower cost.

Another new Google feature is custom search advertisements for apps. Google will now place relevant ads in searchable mobile apps. If a user has an app that lets them search for a local movie theater, he or she will now see relevant movie theater and film advertising within the app.

Circulars, a new Google advertising format, is not restricted to mobile. Here’s how the new format works: When a user clicks on a search or display ad, he is directed to another ad featuring pictures and relevant products or offers. If the ad is viewed on a desktop computer, the user can email it to his mobile device. He can then take it to the business location to redeem the offers. This format is currently being tested with retailers Best Buy and Macy’s.

For more information about Google’s new offerings, visit the Google Mobile Ads Blog.

By Annie Hay, Marketing Associate

A location-tracking feature in Apple’s popular iPhone 4 and iPad 3G has users concerned for their privacy and advertisers wondering about future geo-targeting uses.

A recent discovery by computer security researchers Alasdair Allan and Pete Warsden has many Apple iPhone 4 and iPad 3G users nervous. In an interview with NPR, Warsden claimed that while uploading information from his iPhone, he noticed that a file called “Location D” popped up on his computer.  The file contained latitude, longitude and text map data that traced virtually everywhere the phone had been.  It seems that Apple has inserted a secret location-tracking feature that does not rely on GPS tracking, but instead finds its location relative to cellular phone towers and WiFi signals.  The data is kept in an unencrypted file on the phone. A software program already created by Allan and Warsden allows anyone to make a detailed map tracing the user’s every movement.

Apple has not commented on the findings, but has directed concerned users to their terms of use, which clearly state:

“We may collect information such as occupation, language, zip code, area code, unique device identifier, location, and the time zone where an Apple product is used so that we can better understand customer behaviour and improve our products, services, and advertising.”

While it does not seem as though Apple is using the information it collects, the data is transferred to the user’s computer as the phone syncs. This has privacy experts concerned that the data might be used in lawsuits, federal investigations, or by computer viruses and hackers. Advertisers are also interested in how this information might be used in the future for geo-targeted mobile campaigns.

Graham Cluley, senior technology consultant at security firm Sophos, explained to BBC News: “I think there are some legitimate privacy concerns and people will probably look for a way of obscuring that data . . .But it is an object lesson about reading the terms and conditions.”

As we continue to live our lives in an interconnected digital age, the discovery is a good reminder of how little we understand about our privacy.

Posted by: Nicole Johnson, Marketing Coordinator

Ever heard of “location-sensitive mobile advertising?” It sounds fancy, but it’s just a term that encompasses a combination of two tactics that are becoming bigger and better every day – local search marketing and mobile advertising. The major players in the game (Yelp, Google and Facebook) are paving the way for new growth in this arena.

Yelp offers a smartphone application called “Nearby” for its mobile users. The app allows easy mobile access to any coupon or offer posted on a local business’s Yelp profile page. Users can also use the app to find businesses located in close proximity to their immediate locations.

Similarly, Google released “Near Me Now,” a feature that is automatically available to any user who accesses Google using an iPhone or Android phone user a 2.0.1 version or newer browser. The feature gives users easy navigation to restaurants, banks and other businesses in their areas. The mobile search engine results page serves up 10 local businesses and features three Google Adwords paid listings. Keep in mind that the Near Me Now link only appears if users give Google permission to access their locations with GPS tracking.

Posted by: Erin Wilson, Marketing Coordinator

Mobile consumption has continued to increase in popularity for both marketers and consumers. In fact, while the amount of time spent on other media channels such as television, video and radio has decreased, mobile phone usage has seen a large increase. In 2009, average daily mobile Internet use rose 36 percent, talking on mobile phones was up 12 percent, and texting increased by 55 percent.

Smartphones continue to grow in popularity; ownership increased from 11 percent to 17 percent of mobile users within the last year. More and more smartphone users are using their devices to access social media. The amount of mobile users who visited social networking sites on their phones grew from 2.9 percent to 18 percent in just one year. 38 percent of smartphone users fall into the 18-24 age range. However, people of all ages seem to be using their phones to perform all sorts of activities, such as watching videos, texting, taking pictures and accessing the Internet.

These mobile usage trends are extremely important to marketers. Approximately 56 percent of companies are now planning to increase their marketing budgets to include mobile. The Mobile Marketing Association predicts that mobile ad spending will increase from $1.7 billion in 2009 to $2.16 billion in 2010. The market is currently valued at $5 billion and is projected to reach $19 billion by 2014, proving that mobile is a space that companies must be in.

Many companies have already optimized their websites and content to be mobile friendly and more companies are jumping on board. The companies that recognize the growing importance of mobile marketing will continue to be successful and reach many consumers that they otherwise would have missed.

Sources:

eMarketer
Econsultancy