Posts tagged Revenue

Google Penalty Hits eBay’s Bottom Line, May Cost Up To $200 Million In Revenue

Earlier this year, eBay was hit with a search penalty by Google. The loss of traffic resulting from that has been noticeable enough that eBay acknowledged it in a financial call this week, suggesting it may have cost up to $200 million in revenue. eBay also said it plans to improve its efforts in…



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Rather Than Opt-Out Of Google, German News Publishers Demand 11% Cut Of Revenue

German news publishers are picking up where the Belgians left off, a now not-so-proud tradition of suing Google for being included in its listings rather than choosing to opt-out. This time, the publishers want an 11% cut of Google’s revenue related to them being listed. The news comes from…



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Mobile SEM Strategy: How Savings.com Increased Mobile Search Revenue By 1000 Percent YoY

When Google announced Enhanced Campaigns last year, like many marketers, the team at coupon deals site Savings.com was skeptical and surprised that they would be forced to adjust their approach to mobile. In a soon-to-be-released case study from Google, Savings.com shares how they quickly pivoted…



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How Ads In Mobile Apps Could Send Facebook’s Revenue Soaring

The Platform is a regular column by mobile editor Dan Rowinski. Ubiquitous computing, ambient intelligence and pervasive networks are changing the way humans interact with everything.

Amid all of Mark Zuckerberg’s iconoclasm Wednesday at Facebook’s F8 developer conference, it was easy to miss the biggest news for the company—and the mobile world it hopes to dominate.

Yes, throwing out Facebook’s “move fast and break things” philosophy is significant, as is anonymous login. But of far more financial consequence, both for Facebook and the developers it courted at F8, is the Facebook Audience Network.

Facebook May Finally Have A Google-Like Ad Product

It may well prove to be the equivalent of Google’s AdWords and AdSense products. On their face, when Google introduced them, they seemed like simple tools for buying targeted ads (AdWords, in 2000) and placing them on other websites (AdSense, in 2003). But they proved to be powerful financial engines, ones that still fuel the company’s growth more than a decade later.

The Facebook Audience Network—Facebook’s new advertising product—could be the biggest idea that the social network has ever produced. While it failed to reinvent advertising on the desktop, where Google dominates, Facebook has a shot at doing so in mobile.

It’s easy to overlook developments in advertising and marketing technology. On a day-to-day basis, the only people who really care about it are advertisers, publishers, and the companies building advertising technology. I’ve purposefully avoided writing about ad tech for years, because, to be quite honest, nobody really gives a damn.

Quick Thought: Facebook App-Linking The Competition

The other news that has people talking from F8 yesterday is the company’s new “App Links” proposal. Essentially, Facebook is trying to create the same type of linking URL structure for mobile apps on iOS and Android that has long existed on the Web.

First, we must acknowledge that links between apps has definitely been a problem for developers. Mobile leads itself to a fragmented Web where apps function as their own little individual fiefdoms, not connected to the outside world or each other. App Links wants to solve that.

But, as Jay Yarow from Business Insider correctly points out, why would Apple and Google just let Facebook waltz in to become the de facto middleware for mobile app developers? Facebook wants to control the pipes between mobile apps (like it does on the Web), but Google and Apple have far more control over their own operating systems than they do on the Web.

With Google I/O and Apple’s WWDC coming up soon, we may see the platform operators crush Facebook’s dream of App Links before it even takes off. Only a strong embrace by developers, whom Apple and Google desperately want to please, will give App Links a shot.

But here I am, writing about ad tech on The Platform for the second time in a week. Why? Because we are beginning to see an epochal shift in how advertisers handle mobile. With its Audience Network, Facebook has launched an economic engine that could make a huge difference for the company’s own revenues and the bottom lines of app publishers, brands, and advertisers. 

As noted in The Platform earlier this week, programmatic ad buying mixed with contextual computing is beginning to turn mobile advertising into a viable medium. Facebook knows more about its users than just about any other company outside of Google—and arguably more, since Google’s efforts to force its users to log in via Google+ have met resistance, while Facebook’s users are always logged in. 

Facebook Ads, Off Facebook

Facebook will now be able to sell personalized, targeted ads off of Facebook and into the rest of the mobile application ecosystem. The goal of the Audience Network is to provide a way to monetize apps across iOS, Android, and soon Windows Phone. Just as Facebook moved to spread itself across the Web with Facebook Login and the “Like” button, it’s now doing the same for mobile—with advertising dollars as the lure. 

The dirty secret of Facebook’s advertising business to date is that social advertising, which it launched to much fanfare in 2007, hasn’t paid off. Instead, it has succeeded mostly through its unprecedented scale. Advertisers can’t ignore its 1.28 billion monthly active users, which produced nearly $8 billion in revenues in 2013. It is still growing quickly: It pulled in $2.5 billion in the first quarter of this year and is solidly profitable. Yet while Facebook holds its place in the pantheon of Internet giants, its revenue and employee base are actually quite small compared to the likes of Google or Amazon, which made $15.4 billion and $19.74 billion last quarter respectively.

To put it in perspective, Facebook is just a little bigger than Google was in 2005, a year after the search company’s IPO. That’s when Google’s maturing advertising technologies really started printing money, adding $4.5 billion in revenues in 2006, $6 billion in 2007, and $5 billion in 2008.

Facebook has the opportunity to take advantage of the new mobile era of computing to build its own dollar-stacking empire, if everything falls into place.

Consider that Facebook’s own mobile ad revenue, generated through its own apps, was about $1.33 billion in the first quarter of 2014, about 59% of its total advertising revenue. Just a few years ago, that number was zero: Facebook didn’t sell ads on mobile at all. The Audience Network could take that mobile revenue to the next level.

Quote Of The Day: “This is a world where people eschew sex to write a programming language for orangutans. All programmers are forcing their brains to do things brains were never meant to do in a situation they can never make better, ten to fifteen hours a day, five to seven days a week, and every one of them is slowly going mad.” ~ Author Peter Welch in a brilliant essay dubbed “Programming Sucks” on StillDrinking.org.

Advertisers, developers, brands and publishers—basically, every stakeholder in the advertising game—have long waited for Facebook to make the move to bring its advertising off its own platform and into the rest of the connected world. The Audience Network does not invade the Web, as of yet, which is likely wise: Why take on Google in its stronghold, when Facebook can dominate a faster-growing business?

The potential could be profound. As of yet, no company has fully cracked the realm of mobile advertising to reap the type of profits that Google’s AdWords eureka brought it on the Web. There’s a lot to like here. 

Photo of Facebook CEO Mark Zuckerberg by Selena Larson for ReadWrite

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Yelp Reports Q1 2014 Net Revenue At $76.4 Million, A 66% Growth Over Last Year’s Q1 Earnings

According to Yelp’s Q1 2014 earnings report, the company’s net revenue for the quarter totaled $76.4 million, representing a 66 percent growth over first quarter of last year. Yelp claims average monthly unique visitors climbed to 132 million, representing 30 percent year-over-year…



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Baidu Beats Expectations, Posts 59 Pct Revenue Growth In Q1 2014

Chinese search engine leader and advertising provider, Baidu, released financials for the first quarter of the year reporting total revenues of $1.53 billion USD at $1.24 earnings per share. That’s a 59.1 percent increase in revenue from the previous year.and beats street expectations on both…



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Yandex Reports 62% Share Of Russian Search Market With Q1 2014 Revenue Up 36%

Yandex 2014 first quarter earnings release shows the Russian search engine’s revenue was up 36 percent year-over-year since first quarter of 2013, totaling RUR 10.9 billion ($305 million). The site’s share of the Russian search market averaged 61.9 percent, with search queries growing…



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Search Ads Yield 68% More Revenue per Conversion When Integrated With Social

Marin Software conducted research that sought to answer the question of whether search and social advertising campaigns managed together produced better results. What it found was positive results in the areas of conversions and revenue.

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Study: Search Campaigns Earn Double Conversion & Revenue Rates When Integrated With Social

According to a new study from Marin Software, advertisers that leveraged integrated search and social ad campaigns experienced twice as many conversions, and doubled their revenue per click rates. Using data from its Global Online Advertising Index, Marin evaluated the performance of paid search…



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Google AdSense + AdMob: A New Strategy to Improve Revenue for Gaming Apps

As the holidays approach, you can expect an increase in smartphone usage, especially in activity with gaming apps. Each year around this time, millions of new mobile devices are activated and billions of apps are downloaded. A recent AdMob study* also revealed that downloading and playing gaming apps are users’ top priority when getting a new smartphone, which represents a special opportunity for developers.

A new strategy for game-app developers can help them make the most of this increase in usage. Game developer Izumi Artisan used this strategy to increase his revenue by 60%, and so today we’ll share the details on how he achieved these results. 
Step 1)  Create a strategy guide for your game and post it on your website
Game guides, strategy manuals, and walk-throughs have become commonplace for gamers looking to get the edge or just take the easy path through a tricky section of a game. As a result, numerous third party game-strategy sites have popped up, and are attracting users in mass numbers.
This represents a great opportunity for you as a game developer, as you can create your own strategy or walk-through guide and host it on your website. There are many examples of successful game guides on the Web that you can use as a model when creating your own. The guides will vary in structure and length depending on the format of the game, so we suggest browsing a few to find the most suitable format. If there are already third-party guides competing for your users’ attention, try releasing the “Official” guide to separate yourself from the rest of the pack.
Step 2)  Monetize your new website with AdSense
Creating great content and putting it on the Web is an important step for those looking to generate income online. To start earning revenue from your online content you can use AdSense to show highly relevant ads on your website. 
With AdSense, advertisers will bid against each other to show their ads next to your content. The ads that appear are highly targeted, so they’re likely to be interesting to your visitors. AdSense also offers a number of great features including customization options to control the appearance, placement and type of ads that will show up on your site, as well as the ability to restrict the subject matter of the ads. 
If you’re not already an AdSense publisher, sign up for a free AdSense account
Step 3)  Use house ads in AdMob to drive users to your new website
One of the most difficult pieces of building a successful website is attracting visitors. As a game developer, you have the benefit of an existing and engaged audience — your users. By taking advantage of this built-in audience you can quickly generate demand for your new web content…you just have to point them in the right direction.
You can do this by using AdMob’s house ad feature, which lets you display your own promotions to your users at no cost. By creating a “house ad”  promotion for your new website and displaying it in an appropriate section of your game (i.e., on the home screen, or in-between game play, etc.), you can easily generate awareness for your web content while preserving a good experience for your users. The great part is, you won’t need to push a new version of your app since the house ad can be updated directly within the AdMob interface.
Sign up for an AdMob account here**. It’s free.
Be sure to make the most of the app usage increase that comes with the holiday season by trying this strategy. Have these tips worked for you?  Do you have other tips to share? Let us know in the comments!

**Update: There is a known issue for users who currently have a new AdMob account, that restricts them from signing up for AdSense. A solution is being worked on and is expected in the new year.

In the mean time, if you are currently using the new AdMob and would like to sign up for AdSense, please fill out this form and after reviewing your request we will enable AdSense on your account.

Please note: if you are an existing AdMob user and your account has not yet been migrated to the new version of AdMob, you will still be able to sign yourself up for AdSense. If you do not yet have an AdSense or AdMob account, please sign up for AdSense first, before signing up for AdMob.

Posted by Max Sack - Publisher Advocate
*Mobile Apps Consumer Study, AdMob and Parks Associates, Oct 2013

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