Tag Archives: twtr

Square, Facebook Partner To Bring Ads To Small Businesses

In a blog post Wednesday, digital cash register and payments processor Square ( SQ ) announced that it would integrate Facebook ( FB ) ad buying into its small-business software. The new integration will enable merchants using Square software to buy and target Facebook ads, aiming to help the merchants understand the effectiveness of online ad campaigns on the social network. Square will earn a subscription fee. “There’s a lot of excitement around buying Facebook ads, but the critical missing link is: If I put down $5, how do I know if it worked?” Saumil Mehta, Square’s customer engagement lead, told the New York Times . “The ability to track and close the loop from advertisement to sale — that’s the holy grail.” The company offers a range of digital cash register hardware as well as software that performs marketing tasks. The company’s financial business offers small-business loans — it assesses risk based on the wealth of transaction data it accumulates — and other financial services such as payroll. It also does payments processing — a business that some analysts and investors have criticized for having tight profit margins. Square must share its transaction fees with credit card firms and other financial institutions. Square also has a peer-to-peer payments app called Square Cash that competes with PayPal ( PYPL ) and its offering, Venmo. CEO Jack Dorsey is also CEO of  Twitter ( TWTR ), which is based about a block away from Square’s offices in San Francisco. Square stock was down 4%, near 12.50, in afternoon trading on the stock market today but rose earlier to a four-month high of 13.80. The company has an IBD Composite Rating of 46, where 99 is the highest, and its November IPO generally disappointed. Shares priced at 9, peaked at 14.05 the first day and have mostly lagged ever since. Wedbush analyst Gil Luria warns that the stock is volatile because it has a large number of short sellers betting on the stock to fall, as well as a small float. Company insiders, including early venture capital investors who can’t sell until May under the IPO’s lock-up provisions, hold a significant number of shares. Square beat Wall Street expectations for Q4 sales in the company’s first release since going public in November. Executives have said that the company will turn profitable this year. In 2015, the company’s losses widened to $179 million from $154 million in 2014.

Twitter ‘Uptake’ Stymied By Facebook-Owned Instagram And Snapchat

Struggling social network Twitter ( TWTR ) is being derailed by newer social services including Facebook ( FB )-owned Instagram and privately held Snapchat, according to research group eMarketer, which on Thursday lowered its growth projections for Twitter’s 2016 ad revenue. The growing popularity of chat apps has also “slowed Twitter uptake among younger social network users,” eMarketer said in its report. For 2016, eMarketer expects Twitter to generate $2.61 billion in worldwide ad revenue, down 11% from eMarketer’s earlier prediction of $2.95 billion. Twitter will generate nearly 90% of its revenue – or $2.32 billion worldwide – from mobile this year. That compares with the estimate of $2.62 billion in mobile revenue that eMarketer had forecast in Q3. “Until the company can show that its efforts to restart the growth engine are working, we will stay on the conservative side when it comes to forecasting Twitter usage,” eMarketer principal analyst Debra Aho Williamson told IBD via email. Twitter also has also failed to show “material monetization of logged-out users,” said eMarketer senior forecasting analyst Martín Utreras. “Events like the U.S. election and summer Olympics this year may prove pivotal to the success of this strategy.” Twitter is seen having 291.0 million users worldwide in 2016. Nearly 57 million people in the U.S. – about 30% of social network users, 21% of Internet users and 17.5% of the nation’s population—will use Twitter at least once a month in 2016, eMarketer said. Twitter’s U.S. user base is forecast to expand 8.0% this year, slightly slower growth compared with Pinterest and Tumblr. But Twitter will maintain significantly higher yearly growth rates through 2018 compared to social network leader Facebook and the broader social networking audience, the report said. Twitter is forecast to rank No. 8 by percentage of net digital advertising share held worldwide, with a 1.4% share, eMarketer said. Alphabet ( GOOGL )-owned Google is expected to rank No. 1, with nearly a 30% share. No. 2 Facebook is expected to hold a 12% share of net digital advertising share in 2016, the report said, while No. 3 Baidu ( BIDU ) will hold a 6.1% share and No. 4 Alibaba Group ( BABA ) will hold a 5.9% share. The continued slowdown in Twitter usage came despite a series of new features it rolled out last year, including video tool Periscope and Moments. Twitter reported that user growth slowed for the fourth consecutive quarter in Q4 as it guided Q1 revenue below consensus estimates, raising concerns that usage may be peaking, prompting buyout rumors. The average monthly active user base rose 9% year over year in Q4 to 320 million. Wall Street had expected Twitter to report a 12% rise in users to 323 million. Growth has cooled from 18% in Q1, to 15% in Q2 and 11% in Q3. Twitter, which doesn’t get a high IBD Composite Rating currently, was up more than 2% in afternoon trading in the stock market today , near 17. Image provided by Shutterstock .

‘Walled Gardens’ Of Facebook, Google Hold Keys To Targeted Ads

Is the person who viewed those leather boots on a laptop the same shopper who browsed the pricey footwear from a desktop but ended up buying the product using a tablet? That tricky question is behind the rise of cross-device tracking tools, and it’s the reason why popular “walled-garden” sites like Facebook ( FB ) are gaining in the digital ad game. In the past, cookies were the universal bread crumbs of the Internet, helping advertisers find out which websites a particular user favored. Cookies are tiny text files that let websites recognize users — usually by their IP (Internet protocol) address — when they return to a website, thus learning their preferences. With this data, companies can serve targeted ads — ads that they believe are most likely to lead to a sale. With the transition of Web users to mobile devices and apps, cookies aren’t as effective, and advertisers are looking for new ways to identify users and learn their preferences. “When you understand who a user or person is, you can provide them with more relevant advertising or more personalized information if you are a publisher. That identity is potentially helpful to improve the experience,” Greg Sterling, vice president of strategy and insights at the Local Search Association trade group, told IBD. Determining which exact ad prompted a shopper to buy, a process called attribution, “is the holy grail of advertising right now. It’s what everybody needs to understand,” Anna Bager, senior vice president and general manager of mobile and video at the Interactive Advertising Bureau trade group, told IBD. Learning more about cross-device attribution is high on the must-do list for many ad pros this year, marketing firm Rocket Fuel said in a research report last month. A Rocket Fuel survey found that ad professionals also intend to learn more about data management platforms in 2016. DMPs help businesses get a panoramic view of their customers by collecting marketing information from a variety of channels, such as websites, emails and mobile ads. But first, advertisers want to be certain of just who those shoppers are. “The technology and the different methods to identify people across devices in the aggregate have become more sophisticated,” said Sterling, who calls Facebook the leader in multichannel identification. “You have to sign in to use Facebook, so they will know if you’re on a desktop computer, a laptop or a mobile device,” Sterling said. “They can provide whatever experience they want to provide because they know who you are, and there’s persistent identity there.” But Sterling says that the shift from using just one device to seeking content from a hodgepodge of desktops, laptops, tablets and smartphones has created “blind spots (where) people are not revealed to a Website publisher or a marketer. Somebody may sign in on one site and then go on to use the site on a mobile device and not sign in.” This trend is putting cross-device technology into the spotlight, as digital advertising, including mobile advertising, continues to boom. One trend is programmatic ad buying, where software determines ad buying and placement. It works best with ads targeted to user preferences, no matter the device used. Ad Firm Criteo Predicts User Behavior Market research firm eMarketer estimates that programmatic digital display ad spending in the U.S., which reached $15.43 billion last year, will rise to $21.55 billion this year and $26.78 billion in 2017. Paris-based ad tech firm Criteo ( CRTO ) says its cross-device advertising tools work anywhere online, including on the mobile Web and inside apps. While cookies are a common standard used to identify and follow users in a browsing environment, that information can be “captured through other mechanisms when you are in applications,” Criteo CFO Benoit Fouilland told IBD. “Our technology focuses on predicting the behavior of the user based on shopping intent information. That’s an area where we are developing pretty unique capabilities. “There are not many players in the industry able to develop cross-device capabilities. We are one of those few companies and we are investing significantly in this area of what we call ‘universal matching.’ ”   Top social networks Facebook and Twitter ( TWTR ) are expected to emerge as big winners in 2016, as digital display-ad spending, which includes mobile ads, overtakes search-ad spending in the U.S. for the first time, according to separate reports this year from Cowen and eMarketer.  Google owner Alphabet ( GOOGL ) is seen as another winner, with its browser and slew of email, search and other services that have users logging in with their Google passwords. Facebook remains a dominant pick of the ad buyers surveyed, Cowen’s report said, followed by Twitter, LinkedIn ( LNKD ), Facebook-owned Instagram and privately held social sites Pinterest and Snapchat. EMarketer predicts that 2016 will be pivotal for Facebook; it’s the first year in which more than half of the U.S. population is expected to use the social network. Facebook will capture 73% of social network ad spending in the U.S., or $9.9 billion, this year, eMarketer said last month. Twitter will be a distant No. 2, getting 14% of social network ad dollars, or $1.9 billion. The research firm also says that nearly 53% of U.S. mobile phone users will log onto Facebook at least once a month this year. Google is expected to remain No. 1 in 2016, with a 33.3% share of mobile ad revenue globally, eMarketer said in a report in March. It says that No. 2 Facebook’s share will reach 17.7% this year. User Tracker Methods: Deterministic And Probabilistic To learn user identities across devices, measurement companies rely on two methods — “deterministic” and “probabilistic.” Deterministic matching is at the core of the formidable cross-device matching success of Facebook, Google, Amazon.com ( AMZN ), eBay ( EBAY ), Twitter and other so-called Walled Garden sites, eMarketer analyst Lauren Fisher said in an online seminar in January. Walled Gardens are websites and apps that require passwords for entry and have a treasure trove of information about users, making it easier to match consumers across multiple devices. So, in a nutshell, trackers can pretty much determine who a user is. In being able to identify users, Walled Gardens are “not 100% percent, but press close,” Fisher said in the seminar. “Think about it — even now retailers are making a practice of requesting email addresses when you check out in a store. “If I have Facebook on my tablet, on my phone, on my laptop at home and on my work computer, then Facebook knows all those devices belong to me because I’m logged in and they’re using that login to tie everything together.” Fisher says eMarketer believes “advertisers are going to continue to flock to the Walled Gardens throughout 2016.” While nearly foolproof, the shielded deterministic method used to match, measure and target customers can’t be used on Web properties outside of the Walled Gardens. That’s where probabilistic identity matching comes in. Companies using the probabilistic method analyze wider, non-proprietary digital tip-offs that people leave behind online when they have not used a sign-in. Such data could include which Web browser version a person uses, their physical location and their go-to content sites through use of cookies and such technology. With these methods, tracking is a more of a probable than a determined fact. “When companies start to collect that information and analyze it over time, they can begin to say with a certain amount of probability that a particular device belongs to a specific individual,” Fisher explained. Some Web publishers rely on both the deterministic and probabilistic methods to cross-check and boost their device matching accuracy, Fisher said. “The bottom line,” said Fisher, “is there’s no right or wrong approach.”