Facebook Inc (NASDAQ:FB) booking Samsung for a partnership?

Posted by Lynn Eisler June 20, 2013 1 Comment 1235 views

Mark Zuckerberg, Facebook Inc (NASDAQ:FB)’s CEO has discussed potential partnerships with Samsung Electronics Co., Ltd’s president, Sin Jong Kyun. The social networking giant is in efforts to improve its mobile advertising revenue and tie up with a mobile giant in order to achieve that? e-Marketer recently released a report that indicated that in 2012, FB had earned $47M in mobile advertising revenue and the projection is that it will rise by 333% to top $2B in the current year.

The lip-side…

Zuckerberg said that the company will continue investing in South Korea as the country is a critical market for FB. In his opinion, Facebook will promote cooperation and provide training opportunities with SME’s or small and medium-sized enterprises in Korea. He said that he was hoping it would be possible for Korea’s venture businesses and SME’s to enter the international market via the Facebook platform.

Now the flip side…

Mobile advertising and “likes” and all are great on the face of it but here’s some news. In July last year, there were several reports about phantom Facebook Ad Clicks, Likes and Fans, which continue to this day. At that point, Techcrunch had published a story of a startup, Limited Run, that reached the conclusion that 80 percent of its Facebook ad clicks were coming from bots. Under normal circumstances 1-2 percent of users deactivate JavaScript on their browsers. This particular Startup found that 80 percent of clicks had not been JS enabled. They tracked their server section of the application and found that that those particular requests had not even loaded their company site.

So what exactly was going on? 80percent is an extremely hefty accusation. Is this a classic example of a low-spending, hysterical advertiser who knows everything better? Or did Facebook actually boost ad sales to look good for the IPO?

Numerous complaints

This small startup was not the only one complaining. More reports of unusual traffic patterns activity came in from various sources in Nov 2012 and then again in Dec 2012. Advertisers have found mysterious user profiles that show no activity except of answering hundreds of surveys and polls. The only conclusion is that fake “likes” are being generated and sold to advertisers and lead campaigns. Fact is, people are getting a little wary of buying Facebook Ads or associated services. The company says that measures have been taken against the false accounts. Can Zuckerberg vouch for that?

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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There is 1 Comment

  1. - June 20, 2013
      -   Reply

    I am not smarter then anyone else but this is only common sense! 🙂

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