This Man’s $600,000 Facebook Disaster is a Warning For All Small Businesses

It continues to amaze me how people are completely ignoring what appears to be an incredible amount of shadiness inherent in Facebook’s business model. Whether or not this is intentional click fraud, it is clear that advertisers are not getting what they think they are getting. They won’t be fooled forever, and once they wake up to the money being wasted on fake “likes” and “clicks,” I’m curious to see what happens to their revenue.

The following article from SF Gate is a perfect followup to my post from a couple weeks ago: How Much of Facebook’s Ad Revenue is From Click Fraud?

Perhaps the most shocking passage from the entire article is the following:

Naturally, Brar began disputing his bill with Facebook. He wanted his clicks audited by a third party, to see how many were genuine. Then he discovered that Facebook’s terms of service forbid third-party verification of its clicks. That’s something all advertisers should be aware of before they spend a penny on Facebook.

Facebook is different from the rest of the online ad industry, which follows a standard of allowing click audits by third parties like the IAB, the Media Ratings Council or Ernst & Young.

Um, ok then…

Now more from the SF Gate:

Raaj Kapur Brar runs a small but successful empire of online fashion magazines from his base just outside Toronto. Some of his titles are huge online brands, such as Fashion & Style Magazine, which has 1.6 million Facebook fans.

That’s more fans than Elle magazine has.

Recently, however, Brar has fallen out of love with Facebook. He discovered — as Business Insider reported recently — that his Facebook fanbase was becoming polluted with thousands of fake likes from bogus accounts. He can no longer tell the difference between his real fans and the fake ones. Many appear fake because the users have so few friends, are based in developing countries, or have generic profile pictures.

At one point, he had a budget of more than $600,000 for Facebook ad campaigns, he tells us. Now he believes those ads were a waste of time.

Facebook declined multiple requests for comment on this story.

Brar’s take is a cautionary one because Facebook has 25 million small businesses using its platform for one marketing purpose or another. Many of them are not sophisticated advertisers — they are simply plugging a credit card number into the system and hoping for the best. This is what can happen if you don’t pay careful attention to contract language, or the live, real-time results your campaigns on Facebook are having.

Here’s how Brar believes it went down: He became interested in advertising on Facebook in 2012, and he took it seriously. He went to Facebook’s local Toronto office where he was trained to use the advertising interface. They set up the campaign, and ran a small “beta” test. Then, in late October Brar pulled the trigger on a massive push through Facebook’s Ads Manager. He used Bitly and Google Analytics to measure the number of clicks his campaign was generating.

The results were disastrous, Brar says.

Facebook’s analytics said the campaign sent him five times the number of clicks he was seeing arrive on his sites, which Brar was monitoring with Bitly, Google Analytics, and his own web site’s WordPress dashboard. There was a reasonable discrepancy between the Bitly and Google numbers, Brar says, but not the five-fold margin between Google’s and Facebook’s click counts.

from A Lightning War for Liberty http://ift.tt/1fnku9P
via IFTTT

Why Trolls Start Flame Wars: Swearing and Name-Calling Shut Down the Ability to Think and Focus

Psychological studies show that swearing and name-calling in Internet discussions shut down our ability to think.

2 professors of science communication at the University of Wisconsin, Madison – Dominique Brossard and Dietram A. Scheufele – wrote in the New York Times last year:

In a study published online last month in The Journal of Computer-Mediated Communication, we and three colleagues report on an experiment designed to measure what one might call “the nasty effect.”

 

We asked 1,183 participants to carefully read a news post on a fictitious blog, explaining the potential risks and benefits of a new technology product called nanosilver. These infinitesimal silver particles, tinier than 100-billionths of a meter in any dimension, have several potential benefits (like antibacterial properties) and risks (like water contamination), the online article reported.

 

Then we had participants read comments on the post, supposedly from other readers, and respond to questions regarding the content of the article itself.

 

Half of our sample was exposed to civil reader comments and the other half to rude ones — though the actual content, length and intensity of the comments, which varied from being supportive of the new technology to being wary of the risks, were consistent across both groups. The only difference was that the rude ones contained epithets or curse words, as in: “If you don’t see the benefits of using nanotechnology in these kinds of products, you’re an idiot” and “You’re stupid if you’re not thinking of the risks for the fish and other plants and animals in water tainted with silver.”

 

The results were both surprising and disturbing. Uncivil comments not only polarized readers, but they often changed a participant’s interpretation of the news story itself.

 

In the civil group, those who initially did or did not support the technology — whom we identified with preliminary survey questions — continued to feel the same way after reading the comments. Those exposed to rude comments, however, ended up with a much more polarized understanding of the risks connected with the technology.

 

Simply including an ad hominem attack in a reader comment was enough to make study participants think the downside of the reported technology was greater than they’d previously thought.

 

While it’s hard to quantify the distortional effects of such online nastiness, it’s bound to be quite substantial, particularly — and perhaps ironically — in the area of science news.

So why do people troll in a rude way?

Psychologists say that many of them are psychopaths, sadists and narcissists getting their jollies. It's easy to underestimate how many of these types of sickos are out there: There are millions of sociopaths in the U.S. alone.

But intelligence agencies are also intentionally disrupting political discussion on the web, and ad hominen attacks, name-calling and divide-and-conquer tactics are all well-known, frequently-used disruption techniques.

Now you know why … flame wars polarize thinking, and stop the ability to focus on the actual topic and facts under discussion.

Indeed, this tactic is so effective that the same wiseguy may play both sides of the fight.


    



via Zero Hedge http://ift.tt/1cLWIb3 George Washington

Meanwhile, On The Main Square In Sevastopol….

… The Russians are staking out their claim, after those ships which we wrote about and docked at the main Crimean port, have unloaded their cargo.

And elsewhere, the following poster can be found:

Finally, there’s this:


    



via Zero Hedge http://ift.tt/1kaf86J Tyler Durden

Wall Street Trader: “My Lying Is Part Of Making Deals Although I Generally Consider Myself A Truthful Person”

The story of former Jefferies MBS trader Jesse Litvak, who is currently on trial in New Haven federal court accused of defrauding investors of $2 million by lying on trades of mortgage-backed securities, is well known to regular readers: it was summarized previously in We Are Doneski Gorgeous!” – How Bond Trading On Wall Street Really Works. In that article we showed, more than just an isolated case of alleged fraud, that when it comes to OTC trades which do not transact on an exchange but instead take place over the phone between a salesman and a buyer, it is all a game of lies, fraud and misinformation… however one which both it is a game of lies, fraud and misinformation. Today, Mr. Litvak confirmed as much when he said, quoting Bloomberg,  “My lying is part” of making deals, he said, “although I generally consider myself a truthful person.

And that, in a nutshell is not only Wall Street, but how Wall Street perceives itself: a business in which “truthful people” must resort to lying – even if that means being sued for fraud – to make a living.

More on this story from Bloomberg:

Litvak, 39, is on trial in New Haven federal court accused of defrauding investors of $2 million by lying on trades of mortgage-backed securities. He’s the only person charged with fraud in connection with an initiative to distribute more than $20 billion from the Troubled Asset Relief Program, which the U.S. government created during the 2008 credit crisis to help bail out banks.

 

Joel Wollman, a portfolio manager with QVT Financial LP, testified yesterday that he told Litvak that his firm’s limit for a bond purchase was 57 cents on the dollar because anything more than that wouldn’t provide a 10 percent yield.

 

Under cross-examination from John Hillebrecht, one of Litvak’s attorneys, Wollman admitted he told another broker that he’d get a 10 percent yield at 58 cents on the dollar, and that he wasn’t telling the whole truth to Litvak. The charges against Litvak include claiming that a third party was selling the bonds when Jefferies was the actual holder.

 

“Volunteering information would not give me an edge, keeping information would give me an edge,” Wollman said.

 

You want the other guy to believe something that may not be entirely accurate,” Smith asked Lemin, Magnetar’s assets manager. “Isn’t that the case?”

 

“It is one of the strategies,” Lemin said. “For what I do in mortgages, it is appropriate to use skepticism.” The perception that the other side either withholds information or tells falsehoods “is exactly why I don’t say, ‘How high?’ when they tell me to jump,” Lemin said.

One can only hope that retail consumers, or what little is left of them, will do the same and use “skepticism” in following the rest of the herd right over the cliff as the second dot com bubble, one which has now engulfed the entire market, finally bursts.


    



via Zero Hedge http://ift.tt/1duCy1Y Tyler Durden

The Inside Bitcoins Conference is Coming to NYC – April 7-8

Last summer, I attended my very first Bitcoin conference. It was the Media Bistro sponsored “Inside Bitcoins” Conference and it was an incredible experience for me on many levels. To read my summary of the conference check out my post: Inside Bitcoins: Welcome to Satoshi Square.

Conference organizers describe the upcoming event as follows:

After thousands gathered at Inside Bitcoins in Las Vegas this past winter, this innovative Bitcoin event is returning to New York City on April 7-8 at the Javits Convention Center. 

At Inside Bitcoins industry experts, business visionaries, and virtual currency veterans converge to analyze the first digital, decentralized, peer-to-peer based global currency. These thought leaders will also share their insights and knowledge on the implications of Bitcoin, along with predictions on what lies ahead.

The conference will take a glimpse into Bitcoin’s future with sessions such as Best Practices for Using and Securing Bitcoins, Moving Bitcoin Forward: Bringing Trust, Legitimacy and Transparency to the Market, Media & Legal Challenges for Cryptocurrency Advocates, and Wall Street’s View of Fair Value for Bitcoin.

NEW to the event is the addition of a special space called the Bitcoins Trading Café. A comfortable café setting in the middle of the bustling trade show floor, this space will allow attendees to meet, buy, and sell Bitcoins throughout the duration of the conference. In addition to trading, this space will allow Bitcoin enthusiasts to network, relax, and discuss the cryptocurrency.  

We’re pleased to announce that Liberty Blitzkrieg is partnering with Inside Bitcoins to offer all readers 10% OFF a full conference pass.  Enter code LIBERTY at checkout to redeem your discount. Register Now!

Mediabistro has scheduled additional dates for the conference both in the US and internationally, including an event in Hong Kong on June 24-25. Click here for the full world tour schedule. 

I’m really excited that this excellent event is coming back to my city of birth and I will once again be attending. I look forward to meeting members of the Bitcoin community, and those who are just curious. See you in April.

In Liberty,
Michael Krieger

Like this post?
Donate bitcoins: 1LefuVV2eCnW9VKjJGJzgZWa9vHg7Rc3r1

 Follow me on Twitter.

The Inside Bitcoins Conference is Coming to NYC – April 7-8 originally appeared on A Lightning War for Liberty on February 25, 2014.

continue reading

from A Lightning War for Liberty http://ift.tt/1hb6DIM
via IFTTT

Ukraine Currency Crashes To Record Low

Russia’s earlier “default” warning (or threat) has not just impacted Ukrainian bonds but the currency is crashing. The Hyrvnia is down a stunning 6.8% today – the biggest drop since Feb 2009 – to a record low 9.8 to the US Dollar. This crisis is far from over and we would expect capital controls in 3…2…1…

 


    



via Zero Hedge http://ift.tt/1cjUBYu Tyler Durden

Mt.Gox “Closes All Transactions” Again “To Protect Site And Users”

More humor from Mt.Gox, which has once again “temporarily” suspended all transactions. Can it just make it permanent already, and get it over with?

Just released statement from the doomed exchange named after Magic: The Gathering.

Dear MtGox Customers,

 

In the event of recent news reports and the potential repercussions on MtGox’s operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.

 

Best regards,
MtGox Team

Meanwhile, here is an artist’s rendering of what Mt.Gox’ logo should have been all along:

h/t @ButtCoin


    



via Zero Hedge http://ift.tt/1haXwrq Tyler Durden

Stocks Flip-Flop As Bonds And The USD Pop

This morning’s US equity “market” behavior is ‘volatile’ to say the least and of course all human-driven??! A JPY-pump-driven surge into day-session open suckered just enough in to leave vaccuum and when someone pulled the rug from under the JPY shorts right at the open (bashing USDJPY back down to the all critical 102.00 level) stocks tanked… AUDJPy stabilized and stocks surged back to it and are now treading water around VWAP. While all this was occurring bond yields went only one way – down; and the USD Index jumped notably. Given the all-time-highs, conviction in stocks seems anything but strong.

JPY-carry in charge (more AUDJPY than USDJPY again)

 

leaving S&P futures hovering at VWAP after quite a volatile start to the day…

 

Especially when bonds and the USD have been a one way street…


    



via Zero Hedge http://ift.tt/1et9MON Tyler Durden

Ukraine Bonds Re-Collapse As Russia Warns Of “High Chance Of Default”

Russian bonds had rallied for 2 days on the heels of the ouster of Yanukovych and a hope-fueled strategy (supported by Goldman’s buy-buy-buy recommendation) that Europe or the IMF would save the day and fund them back to solvency. However, Russian deputy finance minister Storchak has a different perspective…

  • *UKRAINE FACES HIGH PROBABILITY OF DEFAULT: RUSSIA’S STORCHAK
  • *RUSSIA AGAINST INCLUDING $3B UKRAINE DEBT IN ANY RESTRUCTURING
  • *RUSSIA: NO LEGAL OBLIGATION TO GIVE UKRAINE REMAINING BAILOUT

And that has sent 3-month Ukraine bond prices tumbling once again…

 


    



via Zero Hedge http://ift.tt/1dujbGt Tyler Durden

Ukraine Calls Russia’s Bluff, Slashes Nat Gas Imports By 80%

Twice in recent years, Russia has suspended gas supplies, or notably raised prices, as the somewhat well-known "trump card" of Russia's oil and gas supply to Ukraine (and Europe for that matter) remains Putin's easiest option for clenching his iron-first against the divided nation. Following a pre-emptive move in November by Ukraine to diversify its energy supply,  Russia had reduced the price of gas for the highly indebted Ukraine in December (to entice Ukraine under Russia's wing); but, after recent events, Dmitry Medvedev signaled on Monday that the price could be raised again. However, today we find that Ukraine's state oil and gas company, Naftogaz, has slashed gas imports from Russia's Gazprom by  stunning 80% in February as Ukraine tries to show Russia it can't be pushed around… of course, with limited (and more expensive) alternative supplies, we fear this could well shoot them in the foot.

This action is similar to that taken in November (before the EU accession discussion)…

Russia and Ukraine waged two gas wars over prices in the winters of 2006 and 2009 (which lasted 3 weeks) over a claim Ukraine was late in paying.

 

 

Ukrainian Prime Minister Mykola Azarov said that if Gazprom refuses to revise its contract, Ukraine would stop importing gas from Russia. In a step away from energy dependence on Russia, last week Ukraine signed a $10 billion shale gas deal with Chevron.

 

Ukraine is speeding up its effort to diversify its supply, and has looked at different exporters, fracking, new offshore projects in the Black Sea, as well as new LNG terminals and pipelines to diversify supply. Ukraine imports more than half of its gas from Russia, but under Viktor Yanukovich’s leadership, has intentionally scaled down Gazprom imports 40 percent over ‘unfair prices’.

And now today,

Ukraine's state oil and gas company, Naftogaz, has slashed gas imports from Russia's Gazprom to 28 million cubic meters per day as of February 24 from 147 million, two Russian industry sources told Reuters on Tuesday.

 

They said Naftogaz had gradually reduced its imports from 147 million cubic meters as of February 1, but did not offer a reason for the cuts.

 

 

Prime Minister Dmitry Medvedev hinted on Monday that gas prices, reduced as part of a Russian bailout in December, may revert to higher levels.

 

Ukraine consumes about 55 billion cubic meters of gas each year, and more than half is imported from Russia. Gazprom exported 161.5 billion cubic meters of gas to Europe last year.

 

A Gazprom official declined to comment on Naftogaz import volumes but said Russian gas transit to Europe was unaffected.

So simply put, they want to show Russia they can't be pushed around… the trouble is, of course, that with alternative supply routes in short-supply (and only more expensive alternatives available)…

 

 

…they may well be shooting themselves in the foot.


    



via Zero Hedge http://ift.tt/1dudZSX Tyler Durden