Skype has an interesting business model. The wildly popular internet phone and video service lets people call other Skype users for free, and pay a small fee to dial terrestrial phones. But if everyone started using Skype, the company could put itself out of business. Before that happens, Skype is trying to increase its advertising options.
This week, Skype announced Click & Call Advertising, which converts business phones numbers online into free call links when companies advertise with Skype. Skype might be on to something here.
MDC Partners, the holding company
that owns ad agencies like Crispin Porter & Bogusky and Kirshenbaum
Bond Senecal & Partners, is about to launch a “Million-Dollar Challenge.” One (or more) lucky marketer will win $1 million and the chance to run his or her own agency.
Winning a million dollars to start your own digital marketing agency may sound like a great deal, but as with any offer that sounds too good to be true, this one comes with a catch.
Chatroulette remains a bit of a marketing headache.
On the one hand, it’s a free platform that has had enormous amounts of publicity and thousands of users. On the other though, the site is somewhat stigmatised, as quite a number of those users don’t seem to be the sort who want clever, real-time advertising.
It probably won't come as a surprise that consumers don't trust advertising. But the numbers are pretty grim.
According to a report entitled Your Brand: At Risk or Ready for
Growth? sponsored by marketing solutions provider Alterian, the number
of consumers who don't trust advertising is disturbingly close to 100%.
Online advertising has suffered less during the recession than traditional ad products, but many advertisers still think online ad inventory falls short in one key area: brand building.
And while print ads may never perform as well as they once did, television advertising has been surprisingly buoyant as digital has grown. In fact, The Economist recently called television "The Great Survivor." As traditional media formats struggle to stay afloat, digital video is seen by many as a strong way to connect with consumers, and video ads are popping up online with increasing frequency. But can video save display ads from obscurity and present the key to brand building online? That's not clear yet.
Looking at current earnings, the mobile ad market is wildly overvalued right now. Only $416 million was spent on mobile advertising in 2009. Meanwhile, Google recently paid $750 million for AdMob and Apple shelled out another $250 million for Quattro Wireless. What gives?
Well, Google and Apple made those investments based on how much they think the mobile market will be worth in the near future. But a lot of people think that mobile will never reach the potential that mobile optimists are predicting.
One of those people is Gilt Groupe's chairman Kevin Ryan. Speaking at an event in New York this week, Ryan expressed skepticism that brands — and consumers — will flock to mobile advertising. The comments are interesting because his own company, which sells luxury items at steep discounts, is part of a mobile segment that is poised for massive mobile growth — digital commerce.
Facebook advertising has been clearing its name over the last year. Increasingly, social ads are starting to gain some traction. Facebook's self-serve advertising platform is on track to bring in $1 billion in revenue this year.
And according to Nielsen, Facebook ads are very effective — if you already have a large following that is willing to help with publicity.
Twitter has been very quiet about its advertising model, but Peter Kafka over at AllThingsD has some details about what advertising approved by the micro blogging site could look like. If his sources are correct, it could look a lot like Google.
But there's one problem with that plan. Twitter has not proven that it has any skills in search.
How do you market ad inventory for a product with no proven ROI? Attach Steve Jobs' name to it. Apparently, advertising for Apple's iPad is selling very strongly, despite the complete lack of data on who is purchasing Apple's new gadget.
Traditional publishers are putting high hopes on the iPad launch next week. And now advertisers are helping to make their dreams a reality. At least at the starting gate.
Yahoo is celebrating its 15th birthday this week, and a lot has changed since 1995. The company once known for its search business has ceded control of that area to Microsoft in a deal that is still waiting for regulators to come to fruition. But Yahoo CEO Carol Bartz thinks the company has a leg up on the competitors in one area: data.
Speaking at the American Association of Advertising Agencies'
Transformation Conference in San Francisco on Monday, Bartz reiterated what her company has to offer:
"We have so much data at our fingertips; we're drowning in
And she had one piece of evidence to prove how powerful that data can be — a new ad partnership with Walmart.