Facebook’s Making More Money: At What Cost? Friday Signal

TED: Prudential’s “Day One: Linda,” embodies this spirit of complexity by telling the story of a woman on her first day of retirement.

In today’s Signal: Facebook is questioned and praised at the same time; TED’s most compelling ad campaigns of the year; mobile ads pay off for Facebook; TV and video ad predictions; connection in brand loyalty is everything; an open letter to Marissa Mayer; and more.

To the links …

Facebook: I Want My Friends Back: This disturbing analysis of Facebook’s recent moves – cutting back distribution of folks’ status updates while charging for promoted posts – could well end up blowing up in the company’s face. It’s certainly no good for the Independent Web, unless, in the end, it helps people realize how dangerous it is to be the Truffula Trees in the Onceler’s backyard.

Facebook: We’re Making Money from Mobile Ads (AP) Facebook started showing ads to users who access the platform from their phones and tablets about six months ago. On Tuesday, the company released third-quarter results, and disclosed that 14 percent of its ad revenue came from mobile advertising.

Where Are TV and Video Advertising Headed? My 10 Bets for 2020 (AdAge) Dave Morgan, CEO and founder of New York-based Simulmedia, a TV ad targeting company, offers some very specific predictions about the future of TV and video advertising. These are the very same bets he made when launching Simulmedia. “So at least my money is where my mouth is,” he writes.

Ads Worth Spreading TED has just announced the third cycle of “Ads Worth Spreading,” its initiative to find the 10 most compelling ad campaigns of the year. The dream behind this initiative is to find ads that communicate ideas with consumers in the same way that TED wants to communicate with its audience. TED invited Ace Metrix to test each of the ads with consumers to gauge a wide range of dimensions that included persuasion, watchability and emotional sentiment. The result was a complete qualitative and quantitative view of each ad’s performance with a U.S. audience.

Technology Turns Brand Loyalty List Topsy-Turvy (NYT Media Decoder) This year’s edition of the top 100 “loyalty leaders” list compiled by Brand Keys, a New York company that specializes in brand and customer-loyalty consulting, is significantly different from the lists of the last two years because of the continuous pace of change in technology. “Brand loyalty has always been primarily driven by emotional engagement,” Brand Keys president Robert Passikoff said in a statement, “and the rankings on this year’s list make it crystal clear that connection is everything.”

DEAR MARISSA: Here’s What’s Missing From Yahoo’s Advertising Strategy (BI) Darren Herman, chief digital media officer of The Media Kitchen and managing partner of KBS+ Ventures, penned this open letter to Marissa Mayer concerning Yahoo’s marketing and advertising technology strategy that has been discussed in recent coverage of the company’s Q3 results.

Audience Targeting Big, Getting Bigger (Digiday) The recent State of the Industry Study by Digiday and eXelate reveals that at least 80 percent of agencies, intermediaries and marketers embrace audience targeting. Not only is audience targeting critical for most online marketers, but they also plan to spend more on data in the coming year.

Web Ads Have Likability Problem (Digiday) A new study released by Adobe suggests that two-thirds of consumers think TV commercials are “more effective” than online advertising. The study also found that 73 percent of consumers think ads should be more about storytelling than about selling something. “That’s probably something that will send heads nodding at many ad agencies, which are often pushed by clients to ‘make the logo bigger’ and go for the hard sell,” notes writer Josh Sternberg.

Travis Shrugged: The creepy, dangerous ideology behind Silicon Valley’s Cult of Disruption (Pando Daily)  Uber founder Travis Kalanick wasn’t happy when he was forced to shut down his yellow cab hailing service in New York last week due to regulation issues. Paul Carr, author of “The Upgrade: A Cautionary Tale of a Life Without Reservations” and “Bringing Nothing to the Party: True Confessions of a New Media Whore,” shares his no-holds-barred thoughts on Kalanick’s “fit” and adherence to “the Cult of Disruption: the faddish Silicon Valley concept which essentially boils down to ‘let us do whatever we want, otherwise we’ll bully you on the Internet until you do.’”

Why The Ad Industry Is In A Talent Rut And A Prescription For Change (FastCo.Create) Allison Kent-Smith, founder of Smith & Beta, a new digital education company set to launch before the end of the year, says the advertising industry has failed to develop and educate talent. “The industry struggles to evolve, react, and fully embrace the new rules for retaining (and attracting) the brightest minds,” she posits. “Many agencies share common symptoms. We continue to trade and exchange the same group of digital leadership. Managers invest in a revolving door of the same types of people, who have all-too-familiar titles, but fail to develop the employees who show up each and every day. We continue to highlight acquisitions, awards, senior hires, and big client wins, yet when do we highlight agencies’ practices for employee education?”


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