Facebook Inc (FB) Invents the Holy Grail of Mobile Advertising

Page 1 of 2

Facebook Inc (NASDAQ:FB) has expanded its commerce offerings by getting into the gift card business — with a bit of a twist. With Facebook Card, users will be able to send gift cards to their friends, who will receive it in the mail for use in stores. Currently, Jamba, Inc. (NASDAQ:JMBA), Olive Garden, Sephora, and Target Corporation (NYSE:TGT) have signed on for participation in the program. The twist is that one card can store multiple balances for different retailers simultaneously, positioning the Facebook Inc (NASDAQ:FB) Card as the universal gift card, earning a permanent place in your wallet. According to First Data, it’s estimated that more than $43 billion in gift cards were purchased during the 2012 U.S. holiday season, which poses a huge business opportunity for Facebook. Industry support for a product like this likely to be strong, since gift cards often lead to additional purchases and provide valuable exposure for a retailer.

Facebook Inc (NASDAQ:FB)

An offline goldmine
From an advertising perspective, the company that can best tie online and offline activity is poised to make fortunes. Google Inc (NASDAQ:GOOG) plans on bridging these two worlds together by leveraging mobile and its Android platform. Earlier in the month, Google introduced Google Zavers, a digital coupon book that’s accessed through your smartphone. Users first add coupons to their account, which are then applied at the register with a single scan. Naturally, Zavers can be integrated with Google Wallet and any coupons are automatically redeemed when you tap to check out. From a marketing perspective, Zavers has positioned itself as a way for manufacturers to get a real-time pulse on activity. CEO Larry Page believes this market is still within the early stages of unlocking value for consumers, advertisers, and manufacturers. In other words, Google has yet to invent the Holy Grail of mobile advertising.

The Holy Grail
The key to this all boils down to improving ad analytics by capturing more areas of data. Ad analytics is a fairly new process for Facebook Inc (NASDAQ:FB), and it wasn’t until “pretty late in 2012,” according to COO Sheryl Sandberg, that Facebook was able to connect sales data into its advertising measurements. Facebook Inc (NASDAQ:FB) has gone a step further and developed a method that can track a user all the way from seeing a mobile ad to when that user makes a purchase at a store. It sounds like Facebook has just invented the Holy Grail of mobile advertising by working deeply with retailers. If Facebook Inc (NASDAQ:FB) can figure out a way to standardize this process, it would undoubtedly create an advertising goldmine for its business.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!