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Friday, November 13, 2009

Running a contest on Facebook? That'll cost you

For Madison Avenue, Facebook has become a little less free.

Last week, the massive social network known brands, customers and marketers who want to start a contest or sweepstakes on the platform should be your first go through an approval process. Getting that approval could a new revenue stream for Facebook: according to several sources in the marketing industry, it is said that running a promotion in a Facebook application, or "feel" requires the purchase of advertising space , too.

It is expensive. The minimum ad purchase $ 10000 for 30 days with her own Facebook-system advertising services, according to documents from CNET or 30,000 U.S. dollars for 30 days ads view site Facebook. Priority in the approval process will be extrapolated on the basis of which it was purchased as much ad space. This is called a step, industry marketing and professional environment in which perhaps a little exaggerated, "a little Death Star-ish."

A Facebook representative declined to confirm, and said the company does not comment on the official records of their marketing solutions published Facebook page.

Take a step back. Cracking contests and cons Promotion Mai great severity, but it is really important to Facebook: The U.S. federal and state regulating lotteries are extremely complicated, and only by authorized competitions, Facebook is that the bases covered.

"The car that each brand, product or company would face a service against them," said Günter Pfau, CEO Stuzo Group, has developed a Facebook agency that many games and contests for clients. "Thus, depending on the value price at which they must be filed with authorities of various States."

What exactly is the competition for new? If a brand is running a contest on the fan page, it must be treated by a self-developed embedded application - for example, not "side of the wall." Shares may also not handling their Facebook user photos User and status messages specific to the competition

Legal experts agree that this is necessary. "The (new guidelines Facebook) actually cover only a small proportion of trips, especially in sweepstakes, contests and other competitions," said Thomas Williams, a partner at law firm Howrey LLP of Chicago, who specializes in law marks. "This kind of contest or promotion is governed by a variety of state and federal rules, so what I think Facebook is trying to protect themselves from liability, it appears that users of any Violations of these laws. "

Williams added: "I think it is a wise and reasonable in the context of Facebook. There are lawyers who specialize in gambling law, and there really are many twists to it. "

One thing he can do too, Stuzo group Gunter Pfau explains, is dishonest and keep advertising by the Facebook platform. "I think that's good news for consumers," he said. "I think what that Facebook is truly protecting these guidelines in the business to consumer more."

But what about the new ad-spend requirements? Facebook has historically pitched its platform development, sites of fans as a free medium for advertisers and marketers to the power of graphical "social Tap" - The over 300 million active users and their connections to each other. And it is clear that these free sites and the company uses as a springboard for the advertising dollar - Chief Operating Officer Sheryl Sandberg, see, for example, regularly gives talks about Madison Avenue, "engagement ads company - it does not require a long history of success for some advertisers to pay what used to be free.

"It makes sense for Facebook, but (it) a little difficult for the advertising industry," said Alisa Leonard-Hansen, who is the title of social media evangelist for digital marketing company iCrossing. "Facebook is constantly trying to discover new ways to make money, and they raised the trend that advertisers have run their sites on contests and other activities. I think Facebook has tried to be able to take advantage of this trend on the market. "

The announcement of expenditure required, also be regarded as partial compensation for the new workforce in the approval process necessary to Facebook. Each company manages the competition on Facebook is now advertising the appointee, fan pages and will continue if you have any further violations of the two providers are monitored and sweepstakes law.

It was impossible to connect a lot of friction when the new regulations. Companies that are not with the competition on their Facebook pages and fan applications are not affected. Even some sites that are particularly small-scale fan, which could easily be forgotten with Facebook, for do not change much. "Of course it will be marketing savvy Rock, and lead (competition) under the radar," said Alisa Leonard-Hansen.

It almost goes without saying that this is clear: the Facebook service and they can do whatever they want. This does not mean marketers will stop complaining. We put in a call to CNET, "This is another example of Facebook say:" Sorry to eat, you have no choice. "

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