Spotify and Facebook: How Free Can Turn into Big Dollars

One of the most well-thought out new features on Facebook is the sharing of music between you and your friends. Much of this comes from their partner Spotify, whose CEO Daniel Ek spoke at yesterday’s F8 Conference.

He brought up two points that really stuck with me.

First is the concept of the record collection. In the days before the internet, we used to go to our friend’s home and browse through their albums. They were often proudly displayed in the living room (if you were a grown-up) or in an orange crate in the bedroom (if you were a teen). We were defined by our collection. A collection of current artists said you were cool. If you had Johnny Mathis mixed with Johnny Rotten, you were an individualist. The biggest collection of Broadway soundtracks this side of the Great White Way? You’re probably a little flashier than most.

New Study Says the More Personalized, the Better

When you travel around the internet, you come across ads that are somewhat personalized. You’ll see banners for sites you’ve previously visited and ads for stores in your neighborhood because advertisers know where you live. But how about an ad that responses to the weather at your location or your age?

Enter Eyeview. They’re a provider that specializes in highly-targeted video ads. Here’s a panel from a Target ad customized by gender and weather.

The ads begin the same but change to show the location of the nearest Target store and then an appropriate item. In this case, a short-sleeve Glee t-shirt for the sunny, Southern California girl, and a cozy, long-sleeve shirt for the guy in rainy Chicago.

Facebook Puts on a New Face with Timeline and Ticker

Facebook is about to change and this time it’s not about a shake-up of your sidebar or a reshuffling of how things show up on your wall. This time, the change is big. It’s a whole new way to connect with the world and share the things that are important to you.

It’s about the timeline, the ticker and a whole new series of open graph apps. I spent the morning listening to Mark Zuckerberg present the new Facebook on a LiveStream from the f8 conference and here’s what I came away with.


Timeline is one of two big, structural changes to Facebook. It’s meant to tell the story of your life by presenting everything you’ve done (and mentioned on Facebook) in chronological order. It really is a timeline – just like the ones they made you use in history class when you were in school.

AOL Adds E-Commerce to Project Devil

AOL’s Project Devil was supposed to be the key to the company’s future financial success but things haven’t gone as well as they’d hoped. Everyone likes the bold, interactive ad units but not everyone is in a position to fork over the kind of cash it takes to run one.

The big boys like Ford, Coca-Cola and Campbell’s are using the program, and AOL’s Tim Armstrong says that the response to the ads themselves has been good. He says folks stay on Project Devil ads almost four times longer than the industry average. In this case, time really is money, because longer engagement times usually result in conversions and better brand recognition.

Facebook Ad Revenue to Top 3.8 Billion in 2011

According to eMarketer, 2011 will be a banner year for Facebook with ad revenues rising 104% to 3.8 billion. And though this seems like an excellent achievement, it’s actually lower than the 4.05 they originally predicted at the start of the year.

Debra Aho Williamson, eMarketer principal analyst would like to note that, “This slight revision downward for 2011 should not be taken as a sign that Facebook’s overall business is losing momentum.”

Because by 2013, they’re expecting Facebook to pull in 7.0 billion. I imagine no one over there is weeping over the balance sheet.

This ad portion only represents part of Facebook’s income. When you add in Facebook credits and other sources, the 2011 number climbs to double what it was last year.

Facebook Readies Read, Watch, Listen

There’s a new rumble in the jungle. Hear it? That’s the excitement building over a big change in Facebook. Rumor is that the social media giant will be announcing their plan at the f8 Developer Conference on Thursday, but All Things Digital has the scoop now.

It’s called “Read. Watch. Listen.” and it could be the biggest shift we’ve seen in Facebook in a long time.

The concept is all about content — video, music, books and movies. The New York Times says that Facebook’s new platform and partnership deals will allow users to share their favorite songs, TV shows and movies right from their profile pages.

Incentivized Advertising Raises Brand Awareness

When we were kids, the promise of a gold star or a sticker was all the incentive we needed to do our very best on a spelling test. As we grew, the incentives did too, a higher allowance for keeping your room clean, then a higher salary for doing a good job at work.

So it’s no wonder that consumers are willing to give a little more of themselves to a brand, as long as there’s a prize at the end.

SocialVibe and KN Dimestore recently conducted a survey to discover just how helpful incentives can be. They placed interactive ads on sites such as and Pandora and on games like Farmville. Visitors were asked to play a branded game or take a survey and in return they’d receive an appropriate reward. For Farmville it was game credits, air-time without ads on Pandora and donations on