Facebook Live: Charlie Rose Interviews COO Sheryl Sandberg, VC Marc Andreessen

DAVOS/SWITZERLAND, 28JAN11 - Sheryl Sandberg, ...

Facebook COO Sheryl Sandberg (Photo: Wikipedia)

From my Forbes.com blog The New Persuaders:

For better or worse, you know a company is serious about putting forward a clear image of itself when it submits to an interview with Charlie Rose.

And so on Oct. 2, Facebook COO Sheryl Sandberg and board member and uber-VC Marc Andreessen talked with the PBS journalist at the annual ad confab Advertising Week in New York, clearly in hopes of persuading brand marketers to invest much more on the No. 1 social network. Here’s a live account of what they had to say, paraphrased at times (especially when it comes to fast-talking Andreessen):

Rose asks Andreessen where advertising is heading in the Internet age.

Andreessen: People love the Internet and there’s such a powerful global phenomenon putting the world in people’s hands. We have the fundamental challenge in advertising and media: Most of the money is trapped on the wrong side. We still don’t have most of the money and advertisers moved over to online. We now can see that transition happen, particularly with mobile.

Sandberg: You went from radio to TV and print and then to online. We think Facebook represents the next stage of online and we’re still in the very beginning. Ads online today are onetime and one-way, no ongoing relationship. We’re at the very beginning of changing that. Businesses have an opportunity to change their relationships. They can establish an ongoing relationship. And members have 130 friends they can pass messages along to.

Rose: What are the challenges of mobile for Facebook?

Sandberg: Mobile is a huge opportunity for Facebook. There soon will be 5 billion phones. The engagement opportunities for us are obviously much, much higher. Our mobile users are much more engaged, and that forms the basis for monetization.

Also, the marketing messages can be put into the newsfeeds.

Rose: But does it in any way make the user unhappy?

Sandberg: We’re looking very carefully at this. We’ve been very pleased with the results. We’ve also seen a real improvement for marketers.

Rose: Has the monetization been slower than you expected?

Sandberg: Marketers understand they can’t just do the same campaigns. Then we have early adopters, and we’re working to help them understand. …

Read the complete post at The New Persuaders.

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Facebook To Start Charging Businesses To Run Offers

From my Forbes.com blog The New Persuaders:

After launching Offers several months ago, Facebook now is switching the retail and local merchant deals service into money-making mode.

The No. 1 social network, under pressure to prove that it can juice revenue growth to justify its $50 billion-plus valuation, said today that it will require merchants to buy at least $5 worth of ads in order for their offers to appear in  the newsfeeds of their target audiences and their friends. The amount businesses are required to pay for these ads, specifically Page Post ads, will vary depending on the size of their Facebook pages.

Facebook also has added several new features to Offers. For one, they’re available worldwide to all Pages with more than 400 fans. Also, merchants can add a bar code to an Offer so they can track results more easily, as well as potentially run Offers on their e-commerce sites.

Facebook says the changes, in particular the requirement that merchants spend money, should produce Offers that consumers view as higher-quality and more relevant because businesses will be incented to make those offers better if they’re paying for them. The changes also position Offers more squarely against incumbents Groupon and LivingSocial.

Facebook isn’t providing much in the way of numbers on how Offers are doing except for one example: It says the ARIA resort in Las Vegas booked more than 1,500 nights, producing a return of five times its investment from running Offers.

Although many of the new ad and commerce initiatives Facebook has been rolling out no doubt were planned well before its May initial public offering, the company has introduced a flurry of new ad formats lately. Facebook’s share price had fallen by half from the IPO, thanks to concerns by investors about whether its ads are catching on fast enough, especially on mobile devices.

Benchmark VC Matt Cohler: Mobile Ads Will Be Even Better Than Web Ads

Image representing Matt Cohler as depicted in ...

Image by Facebook via CrunchBase

From my Forbes.com blog The New Persuaders:

Despite rising doubts about whether mobile advertising will ever amount to much, Benchmark Capital partner Matt Cohler says he’s more jazzed than ever about the prospects.

In an interview with TechCrunch founder Mike Arrington at the TechCrunch Disrupt conference this morning in San Francisco, the former vice president of product management at Facebook said he has made zero investments this year, though he wasn’t entirely clear why except to say he made more than the usual number last year. But he said he’s looking actively for opportunities in “mobile marketplaces,” as well as products and services that use the smartphone as a “remote control for your life.” Here’s what else he had to say, in edited form:

Q: You haven’t made any investments lately. Why?

A: I haven’t made any investments this year. Last year I made more than a typical venture investor would.

It wasn’t a single specific decision. We’re at an interesting moment in time where aspects of various platforms are starting to shift. But I’ll do it if the time is right.

Q: Do you regret not making some investments?

A: I’m sure I passed on some things that will probably be successful.

Q: You criticized Groupon awhile ago when it was hot. That looks pretty smart two years later. But you have invested in a deals site in Brazil.

A: I think daily deals are a good idea. Any ad people view as content is a good ad, and that’s true for daily-deal ads too. But I’m not sure it’s smart to build a company around that one thing. Groupon has some interesting assets. The question is what can it do with them? …

Read the complete post at The New Persuaders.

Is The Tech IPO Deep Freeze Finally Thawing?

Courtesy 20th Century Fox

From my Forbes.com blog The New Persuaders:

Facebook’s initial public offering in May was supposed to be the bellwether for an expected pile of IPOs this year, but the subsequent dive in the social network’s shares appeared to put new offerings into a deep freeze. Now, it looks like the mini-Ice Age for IPOs is starting to thaw.

Today, two companies that were widely expected to file for an IPO before Facebook’s IPO faceplant, said they plan to go public this month. Internet security firm Palo Alto Networks aims to raise up to $175 million with an offering at $34 to $37 a share.  Kayak, which had put off an IPO expected late last year, also priced its offering, hoping to raise $87.5 million at $22 to $25 a share.

Given that Facebook’s IPO was supposed to be a sure thing–and most assuredly wasn’t–there’s certainly no guarantee that these two companies will help bring back the IPO market. Investors will be cautious about every new IPO, not only because of Facebook, but because of the poor subsequent performances of tech IPOs such as Groupon and Zynga. What’s more, the economy is simply too uncertain to bet on a momentum-driven market like IPOs.

Nonetheless, successful IPOs by Palo Alto Networks and Kayak–on top of another recent IPO success by ServiceNow in June–would inject new life into the technology investment cycle. Indeed, investors such as YCombinator’s Paul Graham have warned that Facebook’s face plant has already cooled early-stage tech investment. So any revival would be positive for the innovation and growth that comes out of that cycle. …

Read the complete post on The New Persuaders.

What’s Coming on the Internet in 2011 (Or Not)

I know I shouldn’t do it–predictions too often are either obvious or wrong–but I can’t help it. If I have to think about what’s coming in 2011, and I do, I might as well inflict those thoughts on the rest of the world. Isn’t that what blogging is all about? Anyway, here’s what I expect to see this year:

* There will be at least one monster initial public offering in tech. Take your pick (in more or less descending order of likelihood): SkypeGroupon, ZyngaDemand MediaLinkedIn, Twitter, Facebook (only if it has to). But despite many stories that will call this event a bellwether,  the IPO won’t bring back anything like the bubble days of the late 1990s (and thank goodness for that) because there are still only a few marquee names that can net multibillion-dollar valuations. UPDATE: Well, so much for that descending order. LinkedIn apparently will be the first to file–though whether it will be a “monster” IPO is another question. UPDATE 2: Well, here’s that monster IPO–since it’s hard to believe Facebook won’t go public if it has to disclose financials anyway. But it likely won’t happen until early 2012. Update 3: Now Groupon appears to be leading the IPO derby. Update 4, 1/20/11: Now it looks like Demand Media will be the first out. Again, not sure that’s the monster one, but if it’s successful, more will come.

* App fever will cool. Good apps that encapsulate a useful task or bit of entertainment–Angry Birds, AroundMe, Google Voice–will continue to do well. But those apps that do little more than apply a pretty layer atop Web content won’t get much traction–and moneymaking opportunities are uncertain in any case. The bigger issue: Once HTML5 becomes the widespread standard for creating Web services, enabling much more interactive Web services right from the browser, I wonder whether the need for separate apps will gradually fade. Continue reading

Offermatic Takes On Groupon With Automated Deals

Like a lot of people, I’ve been taken a little aback by the incredible success of Groupon, the deal-a-day site that Google recently offered $6 billion to buy–only to be rejected last week, for pete’s sake. Estimates of annual sales, all thanks to the 50% cut it takes from deals offered daily by local merchants around the U.S., range from $500 million to an almost unbelievable $2 billion (and indeed that is believable only if it’s gross revenues, of which Groupon gets half or less).

For all that, no small number of people have questioned various aspects of Groupon’s business, from wondering if it’s a fad to asking whether merchants ultimately will find the deals profitable enough to continue. A new deal service launching today from Sunnyvale-based startup Offermatic provides some potential answers to those limitations–while raising some questions of its own.

I can’t really offer a better description of Offermatic than the one Mike Arrington at TechCrunch provided last May, when Offermatic began beta testing: It’s the freak love child of Mint (the online finance tracking service now owned by Intuit), Blippy (a service where you post your purchases to the world), and Groupon. So for example, if you spend $75 at Home Depot one month, you might get a $20-off coupon from Lowe’s–deposited automatically in your credit-card account. More details from Offermatic: Continue reading

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