In today’s news, investors contribute to Jessica Alba’s startup, Facebook buys 750 patents, and they also introduce a pricey new ad program.
Jessica Alba’s startup.
The Honest Company, has raised $27 million of investor capital to develop its online presence. The company sells baby products that are all natural and free of toxic chemicals.
Alba, who co-owns the company, stated in a press release that “The new funding confirms our positioning and acknowledges the big need for a brand and service to deliver pure, healthy products that are delightful, effective, and beautiful.”
Honest.com’s quick fundraising shows growing investor confidence in celebrity-backed brands. Jessica Alba is not the first personality to start a successful company. Other celebrities, including Lady Gaga, Leonardo DiCaprio, and Justin Timberlake, each have launched successful brands, and celebrity backing has proven to be a way for startups to quickly raise capital.
Facebook Purchases IBM Patents
Recently, we reported that Yahoo had brought a patent infringement claim against Facebook, and we speculated as to what course of action the social network would take. A report by Bloomberg Businessweek seems to have revealed that course.
According to the news-source, Facebook purchased 750 patents from IBM, Inc., and they have also applied for 500 of their own patents.
Tech companies have begun to use patents as leverage against competition, and Facebook is doing just that. They can be used to fortify the social network against Yahoo’s recent lawsuit. In the coming weeks, Yahoo will have to show just how strong their infringement claim is.
Facebooks new Log-out ad pricing.
Facebook has introduced a new premium ad program which displays ads as users log out of the site. The spot will cost brands $700,000 a day.
These ads only target by age and gender, and are meant for brands looking to get the most reach as quickly as possible.
Although the price is high, Bing, Ford, and Titanic 3-D have all purchased log-out ads.
The log-out ads will function more as traditional marketing. Since they appear on the tail end of the users’ Facebook experience, their efficiency in directing traffic to brand websites is questionable. They would be more effective at directing consumers to brick-and-mortar stores outside of their digital habits.