“mobile advertising”

Wall Street is predicting a good showing from Facebook on Wednesday when it reports financial results for the fourth quarter of 2012, and the full year.

Investor sentiment towards Facebook appears to have shifted towards a cautious optimism in the last quarter, with the company’s stock price rising back above $30 for the first time since its initial public offering in May, when shares were priced at $38, then quickly fell below $20.

Brian Wieser of Pivotal Research Group predicts the stock will pop after the next couple of earnings reports, then “come back to earth” as the market better understands the company.

This quarter, Facebook’s revenues will reflect advertising purchases related to the November presidential election and the holiday shopping season. Analysts are expecting the social network to report earnings per share of 15 cents on $1.53bn of revenue. For the full year, estimates average at 52 cents earnings per share on $5.03bn in revenue. Read more >>

Richard Waters

When Google launched its AdSense network to push advertising to third-party websites, it already had a massively successful advertising business on Google.com.

Facebook hasn’t reached that point yet – so it makes sense that it has pulled back from testing third-party advertising to get the basic product right first. Read more >>

Tim Bradshaw

Facebook’s “Sponsored Stories”. Twitter’s “Promoted Tweets”. Tumblr’s “Sponsors” in Radar and Spotlight. A pattern is forming in how social media companies charge advertisers to promote their “organic” postings.

The latest to flip the revenue switch in this way is Foursquare.

More than three years after the location-led app took the South by South West Interactive festival by storm, “Promoted Updates” are Foursquare’s first big ad productRead more >>

Tim Bradshaw

One of the more eye-catching elements of Facebook’s obligatory rundown of “risk factors” in Wednesday’s IPO filing was the section on mobile.

Facebook has huge scale on mobile. Half of Facebook’s monthly active users – 425m people – use its mobile products, as of December. Read more >>

Tim Bradshaw

Matt Brittin, UK managing director of Google, talks to Tim Bradshaw, digital media correspondent, about a digital divide in advertising, the year of m-commerce and Android taking on the iPad 2. Read more >>

Maija Palmer

Amobee mediaConsolidation in the mobile advertising market continues at breakneck pace. After Google’s proposed $750m acquisition of AdMob and Apple’s $275m bid for Quattro, Amobee is now buying RingRing Media of the UK for an unspecified – but probably much smaller –  amount.

California-based Amobee said the deal would result in a combined company bigger than Quattro in terms of revenues and number of ads served each month. Analysts at IDC estimate Quattro has around $21m in mobile ad revenues, giving it around 7 per cent of the market. Both would still be dwarfed by the combined Google/Admob, which would have nearly a quarter of the market with revenues of $68m. Read more >>

Tim Bradshaw

Many predicted that mobile advertising would suffer in the downturn, as marketers looked to allocate shrinking budgets to more proven media.

But that hasn’t prevented the UK market from almost doubling in size last year, according to a report by PricewaterhouseCoopers for the Internet Advertising Bureau.

PwC’s Eva Berg-Winters said that growth of 99.2 per cent was greater than she had expected. “We have now passed the tipping point where things start moving in the mobile internet,” she said, adding that mobile was taking off faster than internet advertising did at a similar stage of its development in the late 1990s. Read more >>

David Gelles

The success of Yelp (which is very popular, if not profitable), has drawn attention to the local user-generated review site as a potentially viable business model. Indeed, with millions of small businesses looking for new customers (and presumably willing to advertise), accurate, comprehensive and trustworthy local directories are invaluable services for companies and customers alike.

So when Yelp introduced its London site in January, it signalled its intention to attract advertising from a chunk of the city’s 300,000 local businesses. Other similar sites were already active in London, and now one local competitor, TrustedPlaces, is trying to outflank Yelp before it gains traction. Read more >>