AP Goes With Twitter

The Associated Press began using its official Twitter account as an advertising platform on Monday, as the news organization looks for new ways to generate revenue.

Samsung Electronics Co Ltd was the first sponsor on the @ap account for breaking news, which is followed by 1.5 million Twitter users. The South Korean electronics maker’s initial “SPONSORED TWEET” promoted its events at the 2013 Consumer Electronics Show in Las Vegas this week.

AP did not disclose financial details of the arrangement.

Twitter, which sells ads directly to make money from the social media’s monthly base of 200 million users, will not receive any proceeds from the AP-Samsung deal.

The AP called the initiative part of a new business strategy and stressed that sponsored tweets will clearly be labeled to differentiate them from news tweets.

The ads provide AP a new income source as news organizations from newspapers to television face severe revenue declines in the face of high production costs.

While the AP was founded in 1846 by U.S. newspapers as a breaking news conduit, only 22 percent of its revenue comes from member fees. Photo licensing, advertising on its news application AP Mobile and YouTube channel are other revenue streams.

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Yahoo Going Up

Yahoo Inc shares climbed to their highest level in a year and a half, as investor confidence seems to be increasing that new Chief Executive Marissa Mayer can orchestrate a comeback that eluded three of her predecessors.

The Internet pioneer has yet to actually provide Wall Street with any hard evidence that its business is turning a corner – and she has warned that it will be a lengthy job – but investor faith in the ex-Google executive is running high.

Hedge funds Tiger Global Management and Greenlight Capital Management recently disclosed large stakes in Yahoo, accumulated during the third quarter.

“Money managers are staring to want to own this name again,” said Colin Gillis, an analyst with BGC Partners.

“For the amount of traffic they have, and the assets they have, they should be able to squeeze some value out of that,” Gillis said, referring to Yahoo. With Mayer at the helm, he said, Yahoo has “finally got somebody who the market believes can do that.”

Gravity Capital Management’s Adam Seessel said that Mayer’s recruitment of various Google Inc employees, including recently hired Yahoo Chief Operating Officer Henrique de Castro, has also helped burnish Yahoo’s image.

“What the market is seeing is not (financial) numbers so much as they’re seeing people voting with their feet, people moving from Google to Yahoo,” said Seessel, whose firm owns Yahoo shares.

“All these people from Google wouldn’t be following her if they didn’t think that she didn’t have some good cards to play,” he said.

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Samsung And Yahoo Ink A Deal

Yahoo announced a deal on Tuesday with Samsung to integrate its Broadcast Interactivity service into the company’s Smart TVs.

The agreement will allow Yahoo to push real-time content alongside TV shows and advertisements on Samsung TVs, such as “subtle, on-screen prompts” that inform viewers of additional content that they can watch.

“With the touch of a remote, connected tablet or phone, Samsung Smart TV viewers can easily surface content or offers related to the TV shows and commercials they are watching,” Samsung said.

TV programmers can use the integration feature to provide Samsung TV customers with “complementary content” such as trivia, additional information about the show being watched and interactive gaming.

Showtime Networks and National Geographic Channel are two of the first TV programming partners that will take advantage of the agreement, Yahoo said.

If TV ads aren’t annoying enough, Yahoo said the partnership also creates new forms of advertising by “extending traditional 30-second commercials into immediate actions”.

In other words, with broadcast interactivity enabled commercials, advertisers can embed “calls-to-action” for downloading apps or digital media, providing coupons, ordering samples, reading reviews or viewing product information. Just in case you really want to know more about that Mr Muscle sink unblocker, or the next JML cleaning gadget that is set to transform your home life forever.

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Will Facebook Go Lower?

Facebook is still overvalued and analysts are starting to agree with us that the company could fall to about $13 a share.

SmartMoney’s Jack Hough is being quoted by Forbes as saying that Facebook should be worth about half what is now – about $29.52 billion, or just a tad over $13 per share. Hough compares Facebook to Google which trades at 3.6 times its projected revenues for 2014. Analysts expect Facebook to have $8.2 billion in sales that year which means you just multiply this figure by about three.

All makes sense and is a similar view to what I said when Facebook issued its daft IPO and people lost their shirts and underpants on the deal. Part of the problem is still that Facebook has not worked out a good way to make money from advertising and it has not got an effective mobile strategy.

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Sharp To Pay Fine In Price Fixing Settlement

Sharp said on Monday it has agreed to pay Dell and two other firms $198.5 million to settle a lawsuit for fixing LCD panel prices in Europe and North America.

The company agreed to settle the civil lawsuit, which was first filed in November of 2009 against a group of companies including Sharp, Epson, Hitachi and Toshiba for collusion on prices of LCD panels sold to Dell. A Sharp spokeswoman said the company made the decision independent of the other firms involved in the lawsuit, and the payment would settle the suit with Dell. Sharp did not name the two other companies besides Dell.

“After broadly considering factors such as the U.S. civil lawsuit system and the facts of this case, Sharp has determined that agreeing to a settlement is the best policy,” the company said in a statement.

Dell sought damages to recover funds it paid for LCD panels purchased at inflated prices. The lawsuit involved TFT (thin film transistor) panels, widely used in TVs, laptops and handheld gadgets.

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Is GM Reconsidering Facebook

General Motors Co and Facebook Inc are in talks about the return of the U.S. automaker as a paid advertiser almost two months after GM said it would stop running ads on the social networking website, sources close to the situation said on Tuesday.

Although the two companies remain far from reaching an agreement, Facebook executives have actively courted the world’s largest carmaker. One source said Facebook was not pushing for GM’s immediate return, but offered to provide data showing the effectiveness of the website’s paid ads.

Facebook Chief Operating Officer Sheryl Sandberg sent GM Chief Executive Dan Akerson an e-mail urging the company to reconsider its decision shortly after the third-largest U.S. advertiser pulled its ads in May, a move that undermined confidence in Facebook on the eve of its highly-anticipated initial public offering, according to sources who were not permitted to speak publicly because the talks are ongoing.

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Is Internet Explorer Making A Comeback?

Microsoft’s Internet Explorer (IE) in April again managed to grab more user share, the third time in the year’s first four months, to stay well above the 50% mark and remain the world’s top browser, a Web analytics company said on Tuesday.

Google’s Chrome’s share also climbed in April, said Net Applications, ending that browser’s three-month decline.

IE boosted its share by about three-tenths of a percentage point last month to average 54.1% in April. That returns IE to a mark comparable to its September 2011 share.

Since Jan.1, IE has increased its usage share by 2.2 percentage points for a 4% gain since the end of 2011. The turnaround has been IE’s largest and longest since the browser began shedding share years ago to Firefox, then later, Chrome.

Microsoft has pinned its hopes almost entirely on IE9, the 2011 edition that runs only on Windows Vista and Windows 7.

On Tuesday, Microsoft again stayed on message, highlighting the gains made by IE9 on Windows 7 — the pairing the firm has said is the only metric it cares about — but ignoring the overall IE increases this year.

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Is E-Commerce Next For Facebook?

A group of e-commerce start-ups, backed by some of the tech world’s most respected financiers, are hoping that Facebook Inc will become an e-commerce powerhouse to rival Amazon.com Inc and eBay Inc.

As the world’s largest social network moves toward a $5 billion initial public offering, it will come under more pressure from Wall Street to generate new sources of profit growth and reduce its reliance on advertising, which accounted for 85 percent of its 2011 revenue.

Some entrepreneurs and investors increasingly think “f-commerce” – meaning e-commerce on Facebook – is the answer. Start-ups such as BeachMint, Yardsellr, Oodle and Fab.com are coming up with novel ways to persuade Facebook users to not just connect with friends on the social network, but to shop as well.

Backed by tens of millions of dollars from venture capital firms like Accel Partners and Andreessen Horowitz, and other big investors like Goldman Sachs, these start-ups are pushing out shopping apps, hosting online garage sales and testing out new business models on Facebook.

“E-commerce is a huge category with very strong tailwinds and it’s a natural move for Facebook,” said Sam Schwerin of Millennium Technology Value Partners, which owns Facebook shares and has a stake in BeachMint.

Amazon revolutionized online shopping by crunching lots of customer and purchase data to come up with relevant, personalized recommendations. In the same vein, Facebook’s combination of data, analytics and payment technology could fuel the next generation of e-commerce, Schwerin said.

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Yahoo Goes-DO NOT TRACK

Yahoo websites worldwide will comply with users “do not track” settings starting later this year, Yahoo announced Wednesday.

Most major browsers are now able to send a message to sites visited, indicating whether users want their surfing behavior to be tracked by cookies for the purposes of displaying personalized ads. In February the last major hold-out, Google, announced that its Chrome browser will include do-not-track support by the end of the year.

That message, an HTTP (hypertext transfer protocol) header accompanying a request to display a Web page, avoids the awkward paradox that to store a visitor’s preference not to be tracked by cookies, sites had to store a cookie containing that preference, and provides a consistent way to store and indicate such preferences across all Web sites that respect the do-not-track header.

Support for the do-not-track header has been in the works since last year, Yahoo said. All Yahoo sites will respect the header, including those of Right Media and Interclick, two Yahoo subsidiaries specializing in behavioral or data-driven advertising, the company said.

The company’s announcement comes the same day that the U.S. House of Representatives’ Subcommittee on Commerce, Manufacturing, and Trade is set to hold a hearing on balancing privacy and innovation, and in the same week that the U.S. Federal Trade Commission called for creation of a do-not-track tool for Internet users.

In a statement announcing its plans for allowing visitors to opt out of tracking, Yahoo maintained that allowing advertisers to regulate themselves was the best and quickest way to introduce protections to the market place without sacrificing innovation or value creation.

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Is Twitter Selling Your Tweets?

Twitter users are about to become major marketing meat, as two research companies prepare to release information to clients who will pay for the rights to mine that data.

Boulder, Colorado-based Gnip Inc and DataSift Inc, based in the U.K. and San Francisco, are licensed by Twitter to analyze archived tweets and basic information about users, like geographic location. DataSift announced this week that it will release Twitter data in packages that will encompass the last two years of activity for its customers to mine, while Gnip can go back only 30 days.

“Harvesting what someone said a year or more ago is game-changing,” said Paul Stephens, director of policy and advocacy for the Privacy Rights Clearinghouse in San Diego. As details emerge on the kind of information being mined, he and other privacy rights experts are concerned about the implications of user information being released to businesses waiting to pore through it with a fine-tooth comb.

“As we see Twitter grow and social media evolve, this will become a bigger and bigger issue,” said Graham Cluley, senior technology consultant for British-based Internet security company Sophos Ltd. “Online companies know which websites we click on, which adverts catch our eye, and what we buy … increasingly, they’re also learning what we’re thinking. And that’s quite a spooky thought.”

Twitter opted not to comment on the sale and deferred questions to DataSift. In 2010, Twitter agreed to share all of its tweets with the U.S. Library of Congress. Details of how that information will be shared publicly are still in development, but there are some stated restrictions, including a six-month delay and a prohibition against using the information for commercial purposes.

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