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Facebook: In Desperate Need For A Change
Enjoyed the article. Thanks for sharing. One thing, I'n my opinion, that Facebook has done better than any other company out there is build "duration". When it comes to social networking, social marketing, social-anything, the key is duration. How long individuals are on. As long as Facebook has that, the advertising won't stop. Maybe some companies will pull out, but in the grand scheme of things, something posted on Facebook is seen more and longer than any other site. This is also the reason Pinterest is becoming so popular. Duration is key. Zuck was genius in figuring out that if he could build duration with users, monetizing would follow. It seems to be a natural progression in social space.
Another thing Facebook has done well is monetize the business, not the consumer. This had made their ability to generate revenue a lot easier, but I say that with caution because I agree with you that they need to improve their ability to produce a suitable ROI for advertising.
With that being said, Facebook has a long way to go but a bright future ahead of them. I believe their floor is around the 19-20 range. It will definitely be tested during next quarter numbers, but it will be interesting to watch.
Aug 26, 2012. 11:34 AM
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