One big reason for Facebook's disappointing IPO was that days before it went off, General Motors, one of the nation's biggest advertisers, loudly announced that it was cutting its ad spend on the site to zero.
The big concession from Facebook that brought GM back was this: Facebook will now allow its advertisers to use third-party data from outside of Facebook to target users on Facebook, through the Facebook Ad Exchange, which is still in beta.
The hero for Facebook in all this is New York-based ad sales boss Carolyn Everson, who met with GM Chief Executive Daniel Akerson at the Cannes festival in June.
Talking to lots of people in the advertising tech space over the past few days, we've gotten the distinct impression that Facebook – intentionally or not – has ignored a lot of low-hanging fruit in advertising.
For example, one thing advertisers LOVE to do is show ads to people who have, in the past, already visited the advertisers Website, or a Website that would indicate interest in their product. But until now (and even this is still in testing) Facebook did not allow advertisers to buy ads targeting Facebook users based on their activity outside the side because this would have required the use of third-party data.
We also keep hearing that Facebook tried to invent new metrics and jargon for ad buyers, which is always a mistake.
There has to be a chance that Facebook slow-played all this in order to create easier comps for its first few quarters as a public company, right?
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