Re:There's less to Facebook and other social networks than m...
by veritas on Thursday October 18, 2007 @04:46PM
(#69898)
So if it isn't the users and it isn't the revenue, then Facebook's insane valuations are the product of... hype?
Valuations aside, you're right in saying what really matters is monetization and this is where Google shines. I don't care how much information Facebook has about me, I don't go onto Facebook looking to buy things. I go there to see what's going on in my friends' lives. As the article states, ads on Facebook are an annoyance.
Google's in the right market for targeted ads because when we're looking to buy something, we're more open to advertisements and clicking on them. On Facebook, I'd guess that very few, if any, are looking to buy something (and hence Facebook's abysmal click-through rate).
Also, I can't see users leaving Facebook (eventually the time sunk into building connections just entrenches you into the network), but I hope it figures out something quickly, or these valuations might drop.
Valuations aside, you're right in saying what really matters is monetization and this is where Google shines. I don't care how much information Facebook has about me, I don't go onto Facebook looking to buy things. I go there to see what's going on in my friends' lives. As the article states, ads on Facebook are an annoyance.
Google's in the right market for targeted ads because when we're looking to buy something, we're more open to advertisements and clicking on them. On Facebook, I'd guess that very few, if any, are looking to buy something (and hence Facebook's abysmal click-through rate).
Also, I can't see users leaving Facebook (eventually the time sunk into building connections just entrenches you into the network), but I hope it figures out something quickly, or these valuations might drop.