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Twitter's announcement today that it will let advertisers target pitches based on words people type in tweets has marketing types in a tizzy over the potential for another ad venue as effective as 's search ads.

Yahoo said its profit rose 36% as the struggling Internet pioneer showed signs of continuing its slow but steady rebound under Mayer. But its shares fell after-hours on signs of decay in sales of display ads.

France's government says it has persuaded a leading Internet provider to stop blocking online advertisements — a controversial move that would have hit online search giants such as Google.

The two-year-old drive to give consumers a simple way to block companies from tracking their behavior as they move across the Internet has faltered, say participants in the process who are struggling to reconcile privacy concerns with an advertising model that pays for many free Internet services.

Shares in AOL have jumped 14% after the US internet firm reported a sharp rise in advertising revenues. Advertising sales jumped 7% to $340m (£212m), boosting net profit for the third quarter to $20.8m, compared with a loss of $2.6m a year ago.

...There’s also the issue that these mobile ads are completely new. Users don’t know any better and happen to click on them. However, over time (and probably pretty quickly), they will learn to avoid these new ads. When banner ads began in the 1990s, CTRs over 5% were common. They are currently 0.2 – 0.3%.

A commerce site called Limited Run, in announcing that it was deleting its Facebook page, claimed that 80 percent of its ad-clicks on Facebook came from "bots" or automated accounts, and only a fifth from genuine users.

Facebook’s results illustrated a reality for social media: It’s a soft sell medium in which advertising may not be that interesting or relevant to consumers. This is important because it means the revenue potential for social media companies such as Facebook may not be as high as many people assumed.

Foursquare is rolling out its first revenue product as the company moves from focusing on user growth to generating cash. The new Promoted Updates enables businesses to send promoted content to users. These updates will appear at the top in a prominent position in the “Explore” tab in Foursquare. That’s the section of the app that is for users to find businesses nearby. The Promoted Updates, like Google search ads, there is “intent” there while users are looking for a restaurant, bar or other business nearby, says Steven Rosenblatt, Foursquare’s chief revenue officer. Businesses pay on a “cost per action” performance basis for these ads. In some ways these updates are also like Twitter’s promoted Tweets.

Google Inc's revenue increased 21 percent as strength in its Internet advertising business offset a persisting drop in ad rates, stirring hopes among investors the Web search leader is close to slowing that decline.