There is plenty of interesting stuff going on in the world of online marketing this week but today will almost certainly be remembered for Twitter’s long anticipated IPO. So yeah, that will probably get a mention in the Plethora this week. Let’s just get right to it:
- Twitter opened at around $26 and, by the time that I’ve typed these words, has climbed to over $45. That means that Twitter is considered a ~$30B business. To put that into perspective, the largest advertising company in the world, Publicis Omnicom Group–which sounds like the quasi-legitimate face of Lex Luthor’s evil empire–has a market cap of about $35B. I’m not here to tell you whether Twitter is currently overvalued (spoiler: it is) but it’s worth noting that a young company that’s still struggling to make real dollars through ads is neck and neck with a company that has nearly perfected the art. Everyone is entitled to their own opinion about Twitter. I’d argue that they’re an enormous player in the online social scene and they’re likely to be around for years, but I’m skeptical that the current stock price properly reflects the actual worth of the company. Of course, all eyes will be on Twitter’s stock price for the year to come.
- Lost in all of the Twitter mania has been the news that Instagram, now famously owned by Facebook, just got started with its own advertising based revenue model. Instagram is reporting that in its initial rollout, they are seeing over a 5% conversion rate to likes from ads. This begs the question, is that good or bad? That just depends on what the value of an Instagram like is, which is still up for debate. That said, seeing any success is a big deal for Instagram. Many folks doubted that its ads would be good at anything, so at least 5% is something to build on. Stay tuned for more information on this in the coming months!
- Recently, Google pivoted with its Shopping offering and we discussed it here last week. The changes keep on coming, though, as Google is updating shopping for local/mobile as well. Additions to Google Shopping Local include storefronts for retailers, better placement of the ads in the search engine results pages (SERPs), and simplified management for the marketers through AdWords. Local/mobile is supposed to have its biggest holiday buying season of all time this year, so the timing of these changes is no coincidence. Make sure to address your local/mobile offering right away if you’ve got plans to capitalize on all those Christmas shoppers!
- One form of advertising that is incredibly popular to the point of near ubiquity is the celebrity endorsement. Whether it’s Lebron James trying to sell you Nikes or William Shatner telling you to negotiate your hotel room rate at Priceline, the celebrity endorsement model has been a staple for a long time. However, new data (i.e. Big Data) shows that marketers may not be getting the value from celebrities that they perceive. In fact, celebrity endorsements may be the least trusted form of endorsements out there! So, Buick, before you extend Shaquille O’Neal’s contract, you might want to consider that: 1) people may not care whether Shaq likes the Lacrosse and 2) your cars aren’t as roomy as you think!
Thanks for putting down your Wall Street Journal for a moment and stopping by the Plethora for some PPC management news. As we get into the thick of the holiday season, keep an eye out for more and more information about options for retail businesses. It’s a competitive landscape out there but here at the Plethora, we’ve got your back!