Sunday, June 10, 2012

Monetizing free login

Several different providers are offering universal login schema, including Microsoft, Linkedin and Facebook. Apparently, none is monetizing this phase while there are plenty of opportunities to be leveraged.

Let's analyse a simple scenario where Alice, a Spotify user, decides to login using her Facebook account. Facebook knows Alice's geo-location, Alice's profile, Alice's past postings and likes. So Facebook has a lot of information to be mined for serving ads while Spotify does not have the same information. In other words, Facebook can sell ads to Spotify's users. So this could be the "Adsense" program for Facebook.

So my question is why Facebook is not opening this ads platform?


  1. It's an interesting question. While there are a ton of impressions of a login dialogue, I think it's one of the least attractive bits of inventory for an advertiser. At that point of interaction with a site, a visitor is wanting to "just get on with it" and get to the bit of content they are interested in. I think that's why Solve Media looked to address this through capthcas that bake in the advertiser's messaging into the solution. It's an active engagement with the brand message. Maybe FB and others could take that sort of approach (patents aside) -- anything short of that feels like a boon for the company but a failure for the advertiser. Maybe I'm thinking too narrowly?

  2. The $$$ question for Fb (and you): What is Alice "looking" for?