What We're Reading


Facebook Goes After Advertisers (and YouTube)

Other than Google, few digital companies have the ability to reach an entire populace, which classically could only be found on TV.  If Facebook’s plan works, it could lure in tons of ad revenue as marketers shift their focus from television to digital.

“Avoid saying anything negative about YouTube – leave the impression of the user experience up to them” Facebook tells its adtech partners in a leaked, confidential deck that teaches them to sell Facebook’s video ads. The 32-page document details Facebook’s plan to beat television with reach and YouTube with targeting, and spills the beans about an overhaul to video insights slated for Q1 2014.

Facebook slams other digital properties, stating  ”A lot of time is spent by people on mobile with Google properties, YouTube, Yahoo!, MSN, AOL, Twitter and Pinterest…And more total time is spent on mobile on Facebook and Instagram than all of those combined.” It’s that scale, the ability to reach hundreds of millions of people quickly, that Facebook hopes will attract the world’s biggest advertisers.

Facebook’s pitch for video ads breaks down to three things, as explained in this excerpt from the presentation:

1.You want to be where people are. Changing consumer behavior should shape where you spend your marketing dollars.
2.You want to reach all of the people who matter to you. Facebook has unparalleled targeted reach.
3.You want to be in the most engaging digital real estate, which, as you just saw, is Facebook’s News Feed.

One of the social network’s greatest assets is its trove of ad-fueling personal data. Users pour demographic and interest data into their profiles to share with friends and be found, but Facebook also leverages that data to be able to pinpoint them with relevant ads. Taking a dig at YouTube where a lot of demographic data is inferred indirectly and not always accurately, Facebook writes “In narrowly targeted campaigns, the average online reach is 38% accurate, but on Facebook, our average reach is 89% accurate.”

Facebook also touts that users volunteer to watch video ads on its platform instead of being required to watch on YouTube, so the impressions should be valued higher. “When you use video on Facebook, these are chosen views – the consumers clicks to play or scrolls through to watch the video as compared to an ad on YouTube interrupting the user experience and feeling forced.”

It may not be the platform with the biggest reach, targeting, or engagement that captures the ad dollars fleeing television in print, but the one that can best prove its ads actually work.

See full article at TechCrunch

Full Disclosure: no position

E-mail me when people leave their comments –

You need to be a member of StockBuz to add comments!

Join StockBuz

We welcome you to post a blog entry, oped or share your daily reading with us as long as it is relevant to the topic of investing and not an attempt to sell a product, proprietary strategy, platform or other service. Please provide links to any research data and if re-posting other articles, give credit where credit is due providing a back link to the original site.

300 words minimum per post. You may also sort by category or search by topic. Don't forget to comment and please "share" via Facebook, Twitter and Google+. If you have any questions, please contact us.



This is a member-supported site. Please donate when you can to help pay the rent. Thank you!

Stay Informed. Sign up for the FREE StockBuz eNewsletter


Investing involves substantial risk. All content is subject to StockBuz disclaimer.

Create Income With Option Spreads

All content on StockBuz.net is subject to disclaimer and Terms of Service