Facebook: All We Know Is Advertising

January 18, 2008
Facebook On The Way Up 

Although MySpace got 76% of US social network traffic, Facebook grew 51% last year and is about to surpass MySpace in foreign traffic. It’s interesting to note that although MySpace still dominates the total pageviews traffic, growth is stagnate; meanwhile, Facebook continues to make impressive gains.

Zuckerberg Makes 60 Minutes Appearance

zuckerberg.jpg

You can watch the full broadcast on Kara Swisher’s blog (she made an appearance on the segment) Boomtown; there is additional content and a transcript available on the 60 Minutes website as well.

Zuckerburg basically quotes PR material verbatim, which is an assumption on my part, but if you watch the video I feel it will be immediately apparent. One of the highlights of the segment is when Leslie Stahl ask Zuckerburg, “You seem to be replacing Larry and Sergey as the people out here who everyone’s talking about.” He just stares at her. And stares. So she says, “You’re just staring at me,” to which he replies, “Is that a question?” Golden.

“There Have to be Ads”

The rest of the segment is pretty fair, neither a complete puff piece for Facebook or a total humiliation either. One part the stuck out for me, however, is when responding to issues of advertising, privacy and the following PR disaster, Zuckerberg states, “I mean there have to be ads either way because we have to make money.”

Hold up one second.

Dear readers, please look at that again: “I mean there have to be ads either way because we have to make money.” [emphasis mine] It’s disappointing that so many websites these days cannot think beyond the advertising revenue model; yes Google did it and is now multi-billion dollar company, but the context of a sponsored link in a search results page is much different from text ads in a Facebook profile; same goes for many other social networking sites.

badoo.jpg

Where is the creativity?! Where is the diversified bottom line? I’m guessing all of you want glorious IPO’s that a) line your pockets with cash and b) vindicate the various investments that value your product in the billion-dollar range… are you really going to get there through simply advertising? Please, be honest here.

Here’s some ideas: Badoo, a social networking site, lets a user’s profile and content be featured for $1 in a program called Rise Up. Or, you can look at a recent in the blog A VC for a great rundown of revenue ideas, some of which are from Chris Anderson’s earlier post

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: