Web analytics, web metrics, and how to use them to track and improve conversions

If 2007 is the year when everyone starts their own Social Networks (major corporations, that is - but also organizations like our very own Web Analytics Association - that will still be starting one of our own) than 2008 will be the year when everyone has their own Ad Network.

For example - Techcrunch just posted that MySpace will Announce Self-Serve Hyper Targeted Advertising Network at Ad-Tech today:

"...MySpace will announce plans to introduce a new advertising platform, “SelfServe by MySpace,” at Ad:Tech Monday. The service itself will launch to a limited set of advertisers in the next sixty days.

The nearly $1 billion Google search deal signed last year is not affected by this product. Google handles search and text ads only; the new MySpace platform is for display ads on profile pages.

SelfServe by MySpace will allow advertisers to directly purchase, create (see screen shot below) and analyze the performance of ads throughout the MySpace network, in a similar fashion to Google AdWords (although the MySpace platform is for building display ads, not text ads). MySpace will be the first of the big social networking sites to announce an advertising product such as this, with Facebook said to be announcing a similar service Tuesday.

The new tool will enable users to select from a number of ad targeting factors such as geographic, demographic, and various user interest categories. The service will be ready for use by early 2008. The minimum advertisement purchase size is $10; pricing will be based on a click to the advertiser’s profile and will be auction based once it gets going (to start things off, MySpace will charge a fixed CPC based on the category)."

"....MySpace uses proprietary technology to build a detailed profile of each user and their friends, including age, gender, location and interests. Much of this information is pulled contextually from the profile itself (that’s where the secret sauce is). So, for example, MySpace may have a very good idea that a user is not only a sports fan, but the specific sport the user loves as well as the teams and even players he or she follows closely. There are over 300 subcategories for movie lovers alone. "

And Facebook is about to launch a very similar type of service - just aimed at Facebook users and announced two weeks ago - is supposed to be launched this Tuesday (tomorrow) according to Mashable  in Facebook Ad Network Coming November 6th? where the Facebook Ad Network Might Look Like

"....Microsoft and Facebook collaboration on advertising that extends outside of Facebook’s walled garden. As Nick O’Neill speculates, this would entail Facebook utilizing cookies to feed up advertisements around the Web based on a user’s profile data. For example, if you’ve listed in your profile that one of your favorite bands is Coldplay, you might see an ad for their CD or concert tickets when browsing a random web site like ESPN. And who might sell these ads? Microsoft, who already has access to tens of thousands of advertisers through a variety of online advertising initiatives within the software giant’s online offerings. "

And it's pointed out the marketshare for third party ad networks is HUGH ...

"...the market for third-party ad networks is huge. In its most recent quarter, 29% of Google’s revenue ($1.22 billion) came from ads placed on third-party sites. Meanwhile, the potential Facebook model of ads based on a user’s profile data could offer significantly better ads than the algorithm approach of AdSense, which matches ads based on the content of a given Web page. Thus, Facebook’s network could feature higher CPMs, and thus lure publishers away from AdSense. "

So now we're seeing the real reason for Google's OpenSocial initiative - Social Networks, by their nature - have much better information on users than Search Engines do (unless you want to tap into Google 18 month Search and Web History - but if that's done - it will significantly alter the AdWords / AdSense pricing model - though I will argue - taking the plunge into fully targeted ads is  one of the next logical steps for Google and therefore, increase the relevancy and accuracy of their advertising by introducing it's own behavioral targeting based on what it already has - your history - including the DoubleClick data).

Ok, so who else is building, or has built their own Ad Networks lately - we know Microsoft already has with AdCenter and Yahoo redid their Ad Network and called it Panama (with mixed results) - what other Ad Networks launched recently or will launch?

RockYou launches Facebook ad network - this was announced last summer while on Friday, November 2nd, TechCrunch announced - Ok Here’s At Least Part Of What Facebook Is Announcing On Tuesday: Project Beacon while Mobile Social Ad Networks will also become more common in 2008.  Already Gofresh Launched World’s First Mobile Social Ad-Network in September 2007.

Meanwhile, today, BuzzLogic Launches Dynamic Targeted Ad Network 

"...BuzzLogic is launching a new Ad Targeting feature today at the ad:tech Interactive Marketing Conference in New York.

The new ad targeting lets advertisers isolate blogs and social media conversations that are going on around specific conversations about products, brands and issues. This offers a way of presented targeted ads towards the audiences and users involved in these online conversations."

Actually, I knew about BuzzLogic's new Ad platform last week (but not all the details of it that will be disclosed today) - I think the way it works is that you target a conversation via Buzzlogic with now has a backend to Google AdWords - BuzzLogic determines which blogs are the most relevant for your ad, which blogs are the most "influential" and then automatically streams your ads to those blogs - which a much higher click-through and conversion rate (so they say)  - but we'll see more once it's unveiled to the world.

But here's the point of all of this - the world is now ready for go for behavioral targeting - particularly with Social Networks - and every major Social Network, including Mobile Social Networks - will want to roll their on Ad Network based on this - and that is part of what is going to be remembered in 2008 - that everyone wants their own targeted Ad Network and most will launch theirs between now and sometime next year.

Perhaps we should just call the new Ad Networks "Social Targeting" with Behavioral Targeting's Role Broadens in Social Networking with Social network profiles containing a wealth of information about individual members that informs and predicts actual purchasing behaviors.

How the Do Not Track List for Behavioral Ads - Feedback from the FTC plays into all of the new behavioral Ad Networks based around Social Networks - remains to be seen - and that will continue to be a hot topic in Washington though next year.