VC freaks out Yahoos with "shocking" Facebook ad
Yesterday, First Round Capital VC Jeff Kopelman posted to his blog what he thought was clear evidence that Yahoo employees are planning a mass exodus. Through his venture firm, he bought Facebook ads with the message "Leaving Yahoo?" in November and again this week after Microsoft announced its intentions to buy the company. Clickthrough rates on the ads were up 300 percent this time over last, Kopelman said. What Kopelman didn't say was that this time the ads included Facebook profile pictures of current Yahoo employees. The pictures appeared because the Yahoos had joined First Round Capital's Facebook group — not because they'd left the company.
"I think that my experiment was flawed," Kopelman writes on his blog. Here's one Yahoo employee's far-too-gracious reaction:
Earlier today, I read your post on the social ads experiment. I agree that it's an interesting polling mechanism to judge the mood of folks at Y! or Microsoft. But I want to offer an alternate / adjunct explanation to the reason behind the rise you are seeing in CTRs. The ads are shocking.
Social ads were designed as an endorsement. By becoming a fan of a business, I lend my likeness to the business and allow them to promote their products and services to my fans. It most instances, this would have a purely positive connotation. For example, if I were a fan of BMW my likeness might appear alongside a Newsfeed ad which might read "The Ultimate Driving Machine." The ad tagline is generally positive and straight forward. In the case of the ads you designed (attached), my face appears alongside a tagline, "Leaving Yahoo!?". To the casual eye, the ad tagline reads as if it could be reporting a rumor that I am leaving Yahoo!, or that I have already left and that I am recruiting for a start-up.
The negative connotation of the ad design introduces the potential to elicit responses of surprise and shock - not necessarily directly related to employee satisfaction. In fact, if the clicks on the ads are driven by "surprise and shock" it may also provide an explanation as to why the Microsoft CTRs were higher than the Yahoo CTRs. It could be that people at Microsoft were more surprised than Yahoos to see that their colleagues were leaving the mothership.
An interesting experiement in social ads and a good lesson for me about the twists and turms related to Beacon and passive endorsements. I don't want my colleagues to think I'm leaving Yahoo, so while your experiment is ongoing, I've pulled my "Facebook fandom" for First Round Capital, but I very much remain a fan! I know that your experiment was done with the best of intentions. You should keep doing them! Afterall, if we can't be fascinated by this industry (and maintain our sense of humor) it's time to move on. We're all still learning about Beacon and social ads in general. It's a really powerful concept, but I think there we'll discover a line between implicit and explicit endorsements.