Seeking Alpha

One troubling datapoint from Facebook's (FB) latest S-1 is that Q1 ad revenue growth fell to 37%...

One troubling datapoint from Facebook's (FB) latest S-1 is that Q1 ad revenue growth fell to 37% Y/Y. That's down sharply from the 69% rate posted for 2011, in spite of reports of improved monetization, and will add to fears Facebook isn't growing fast enough to warrant a $100B+ valuation. Payments revenue, which includes Facebook's 30% cut on Zynga (ZNGA -1.4%) virtual goods sales, rose 98% Y/Y, but made up less than 18% of sales. (more)
Comments (4)
  • SaltyDog62
    , contributor
    Comments (771) | Send Message
     
    Anyone stupid enough to invest in this dog will get what they deserve.
    23 Apr 2012, 09:06 PM Reply Like
  • Asset Investing
    , contributor
    Comments (42) | Send Message
     
    Click-through advertising is getting killed everywhere on the internet. Look at Google's (GOOG) cost-per-clicks from last quarter. Even if Facebook does improve its ad targeting, banner ads may be a thing of the past.
    24 Apr 2012, 02:14 AM Reply Like
  • Christopher Gonsalves
    , contributor
    Comments (217) | Send Message
     
    But I'm curious why that is so? People in the past would click on banner ads, but now for some reason they aren't
    24 Apr 2012, 02:43 AM Reply Like
  • Asset Investing
    , contributor
    Comments (42) | Send Message
     
    I wish I knew for sure. A lot of people are saying it's because mobile advertising and product placements are the only mediums that are working.

     

    On my website I run Google Adsense and a year ago if someone click on a banner I would receive about $1.40 and now what I receive is around $0.70 per click.

     

    I've also seen that the number of click-throughs is down by about 50% as well. Last summer I would about 1.5 clicks per 100 visitors and that's down to about 0.75 clicks per 100 now.
    24 Apr 2012, 02:53 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs