Miruna Codeanu

Facebook, Pinterest, online marketing

In ca'n viata on March 22, 2013 at 8:21 am

There’s a heated debated on where should the advertising money go in the online environment. Sephora announced that Pinterest is generating 15 times more revenue than Facebook, its Pinterest followers spending 15 times more money than their Facebook followers. Advertisers were accusing Facebook for counting fake accounts as traffic. AdAge announces that fake online traffic costs advertisers more than 6 million $ a month. Slate writes that Facebook is influencing your buying decisions even though you don’t click its ads.  Whom do we trust, where do we put our marketing money?

Facebook: recently introduced sponsored stories which appear in our newsfeed and which Slate claims to influence the choices we make. The users don’t click the sponsored stories, don’t click their ads but somehow they work and you could tell that your sales went up a bit after that Facebook campaign. How do you, as a marketer, measure it? Facebook is testing a method to link the data available about their users with data about offline buying, keeping their users’ privacy.

Pinterest: is definetely good at making dollars due its layout, you pin a picture (product) and then, when you click on it it redirects you the website where you pinned it from. It basically works like a banner with a backlink, magic huh? It is only normal that Pinterest will produce more revenue than Facebook in terms of e-commerce. Pinterest also recently launched an analytics tool.

Online advertising is already old news but what seemed somewhat measurable by all the analytic tools available seems that is not: fake traffic is the most recent and biggest problem for online advertising and now we know it is also a very expensive problem, generating 6 million $ loss.

Ask me, the comparison is wrong. Pinterest is generating money in e-commerce due to its structure and use but does it do the same offline? We can’t know and Pinterest is not yet big enough to go offline. Facebook doesn’t directly linked to revenue in terms of e-commerce but its sponsored stories and ads seem to influence offline buying behaviour.  Traditional online advertising is still in the business, having to deal with major issues, but it doesn’t seem fun anymore and probably most of us navigate the web using adblock.

I’m always betting on the new, as there’s more than just the thrill of “first timers”: the consumer is not used to advertising of this sort, so there are less chances it can be ignored and also early adopters (users) are usually Trendsetter and hopefully you will be there to engage them with your brand.

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