Facebook’s splashy IPO was meant to herald in the new social era. Instead, it has reconfirmed the hype cycle. Facebook’s honeymoon period of inflated expecatations soon cratered into the trough of disappointment, at least among traders and the Silicon Valley cognoscenti. Debuting at $38 and once trading at $45, the stock price keeps heading in the wrong direction, closing yesterday at about $20. The doubts keep mounting: privacy issues around its sponsored stories ad program, advertiser doubts on ROI, spam bots, doubts of high-valuation, executives leaving, the upcoming investor lockup period ending when more shares are released.
But the funny thing is that Facebook is, at the moment, a successful business, generating $1.18 billion in revenues for the second quarter, up 32 percent from the previous year. The problem Facebook has right now is that it’s stuck between two irrational echo chambers, Silicon Valley and Wall Street. The Valley is fickle, going from The Next Big Thing to the Next Next Big Thing in a blink of an eye. Wall Street is the home of irrational expectations and seemingly has little to no idea how the media business works. And then there is a third constituency that will ultimately determine the success of Facebook: Madison Ave. Here the picture is more nuanced. Brands get the power of Facebook as a huge distribution platform; but they’re just getting used to the idea that they need to create good content. Facebook is playing a long game. It’s betting that brands will improve at content and then want even more distribution, which is where Facebook’s ad business comes into the picture. This is going to require patience, something in short supply in either Silicon Valley or wall Street.
WTF is cookie stuffing?
Fraud is a well-documented pox on digital advertising, but it’s also an issue for publishers and marketers working together on affiliate marketing deals, too. One of the more tried-and-true techniques is cookie stuffing.
Publishers report Q1 ad revenue is pacing 10-25% behind forecasts
Publishers are facing a slow start to Q1 and sales teams have a lot of work to do to regain lost time.
Bloomberg, Axios, Politico, other business publishers rethink subscriber retention during the economic downturn
Premium publishers, like POLITICO, Axios and Bloomberg, have to make sure their fees are still considered a necessity as readers recalculate their spending and companies recalculate their expense budgets.
SponsoredHow ad tech is tackling waste by optimizing supply chains
Sponsored by Bidtellect The programmatic and digital advertising industry is well aware of the inefficiencies in buying and selling — from auction duplication and volume bias to multi-integrations and reselling — but how did it get this out of control? How can we fix it? A redundant, multiple-step process to ad delivery has become the norm, […]
Why Vice, BBC, WaPo, others see new TikTok teams as the next wave of specialist publishing talent
As news publishers craft their TikTok strategies, Digiday spoke with the BBC, Vice, The Washington Post and LADbible to see who’s really behind the posts.
Digiday+ Research deep dive: Publishers anticipate a big drop in ad revenue this year
Digiday's survey found that publishers are not feeling great about advertising revenue as 2023 kicks off, with attitudes toward subscriptions and e-commerce shifting as well.