News for hackers. Stuff that matters.
Re:How Facebook Can Become Bigger In Five Years Than Google ... by revorad on Saturday October 02, 2010 @08:41PM (#1751766)
The funny and scary point this post made was that maybe (just maybe) Facebook is bringing back the inefficient TV ads that Madison Avenue loves in the form of Facebook banner ads.

Facebook ads might make more money than Google ads precisely because their effectiveness cannot be measured (just like TV and billboard ads). Sure, engineers will cite poor CTRs but "brand managers" will be eager to dismiss that as oh-so-2001. They are not buying clicks, they are creating "brand awareness on the largest website on the internet".

Re:How Facebook Can Become Bigger In Five Years Than Google ... by pkaler on Saturday October 02, 2010 @09:07PM (#1751807)
Madison Avenue is about demand generation not demand harvesting. You can't market to people that don't realize they have a problem or a need.

You could invent the wheel and there will be no demand to harvest because everyone has always dragged their dinner back to the cave. A caveman will never do a Google search for a wheel.

Re:How Facebook Can Become Bigger In Five Years Than Google ... by il on Saturday October 02, 2010 @09:31PM (#1751840)
FYI, it is impossible for any single company to generate demand, they can only create products that meet existing demand. Demand rises organically over time through the combination of all market forces, cultural trends, etc.

Trying to educate a market that they need your product is a losing proposition. Trust me.

Re:How Facebook Can Become Bigger In Five Years Than Google ... by dtby on Saturday October 02, 2010 @11:48PM (#1752036)
I'm not sure what your claim is here: "Say's Law is hokum." or "Marketing is bunk."
Re:How Facebook Can Become Bigger In Five Years Than Google ... by il on Sunday October 03, 2010 @01:28AM (#1752168)
Neither? Judging from the downvotes my comment has been misunderstood. My job is marketing, so I know better than to say it's bunk. For those who still don't understand, here's what Eugene Schwartz, one of the greatest marketers of all time says: "What are you doing when you market something? You are not creating demand for a product. If you think that you are creating demand for your product, you’ve doomed yourself to a lifetime of hard work and failure. You can’t create demand for anything because demand is too large for you to create. The demand has to be out there. The demand has to exist before you even walk into the picture...You cannot create demand. You can only channel demand. Demand is there. Demand is enormous. The bigger the demand, the better your ad is. You are getting in a boat and letting the stream carry you. Just don’t think that you can paddle up against the stream."
Re:How Facebook Can Become Bigger In Five Years Than Google ... by IdeaHamster on Sunday October 03, 2010 @07:16AM (#1752510)
Madison Avenue loves these "inefficient" ads because they get to play the part of "cop" in the classic prisoner's dilemma.

Let's say you release "Brand New Purple Foobars!" and hire my ad firm to advertise them. Sales are up, so what's your conclusion? Well, maybe my ads really helped push your product. OR maybe your product was just so awesome on its own that it didn't need any advertising. The question is, if you don't know for certain which it was, do you take the risk of not hiring my ad firm next time? What if you don't, but your competitor that just came out with "Brand New Yellow Doohickeys!" does?

The problem with Google's ads is that it removes the mystery. If I know how many people saw the ad, and how many people followed through and clicked the link, then I can evaluate how effective my ad campaign is directly. It's like giving the prisoners cell phones so they can text each other… "Hey, they said you confessed…that true?" "Nah man, you?" "Nope!" "Cool…so drinks later?"

Re:How Facebook Can Become Bigger In Five Years Than Google ... by tlack on Saturday October 02, 2010 @09:31PM (#1751839)
I, and many others, get measurably better click through and conversion rates from Facebook because I can target people who are interested in certain topics and likely to buy. A person's search term is not the whole story.

Do you really think marketers want to blow all their money without returns? Why do you think Google Adwords is so popular in the first place?

And a final note, from someone who worked at a large agency that focused on media buying: display ads often reinforce a keyword/CPM/CPC campaign and lead to better overall results, despite how ridiculous that sounds.