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Re:The Facebook Fallacy by jacques_chester on Saturday July 21, 2012 @02:22AM (#4274134)
> Advertising is a $600B a year business

The point is that, from an advertiser's point of view, most of that money is wasted. Insofar as they can target ads and pay less for them, they will.

That $600 billion is not going to transfer on a 1:1 basis into the internet advertising market.

Re:The Facebook Fallacy by paulsutter on Saturday July 21, 2012 @03:26AM (#4274250)
Are you willing to make a $1 bet predicting the general demise of the Internet advertising business? (I think the article called it a "collapse")?

I'm having a hard time understanding exactly what concrete outcome you are predicting based on your post. Are you predicting a 1:0.9 ratio? 1:0.001? 1:1.1?

Re:The Facebook Fallacy by lmm on Saturday July 21, 2012 @12:30PM (#4275097)
I'd put $1 on the following proposition: 30 years from now, the advertising industry (i.e. in which sellers of products pay directly for advertising - advertising which is not content and does not attempt to confuse the receiver about this) will have less than 1/10th the revenue it does today, as a proportion of the total revenue of all industries put together (I'd say "GDP" but I think that may be defined in terms of profit rather than revenue - and I expect margins to shrink everywhere).

(I think we'll see a big rise in viral marketing, shill and semi-shill reviewing (Klout, amazon's programme where they send products to highly rated reviewers), product placement and sponsored content (the my little pony cartoons; mad men with jack daniels; akb0048), which will blur the line between advertising and content creation. But I think outright ads will collapse)

Re:The Facebook Fallacy by paulsutter on Saturday July 21, 2012 @01:10PM (#4275211)
I love the position you're taking on this. It's a specific view of the future that is plausible, and contrary to my position. Nice work.

To restate: I bet $1 that the ratio of total ad revenue (not including product placement revenue) to GDP will be substantially greater than 10% of what it is today.

Hope we're able to track each other down in 30 years, love to see how it turns out!

Re:The Facebook Fallacy by te_chris on Saturday July 21, 2012 @03:46AM (#4274278)
I'm pretty sure he wasn't predicting a demise, just margins that won't be as sexy.
Re:The Facebook Fallacy by michaelt on Saturday July 21, 2012 @08:56AM (#4274680)
Well, the first line of the article is

> Facebook not only is on course to go bust but will take the rest of the ad-supported Web with it.

Perhaps that's just a juicy opening line to draw people in to the article - but it sure sounds like predicting a demise to me.

Some of the things the article says are reasonable - but I wouldn't bet a dollar on facebook going bust and taking the entire ad-supported web with it.

Re:The Facebook Fallacy by jacques_chester on Saturday July 21, 2012 @09:44AM (#4274754)
> it sure sounds like predicting a demise to me.

He is. Of Facebook.

Facebook is not cheap to run. If revenues fall and costs do not ...