tag:blogger.com,1999:blog-5249997465016074955.post7548033881983628737..comments2023-12-23T21:59:20.634-08:00Comments on The Ad Contrarian: What The Facebook Fanboys Never UnderstoodBOB HOFFMANhttp://www.blogger.com/profile/05158827977385952634noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5249997465016074955.post-22715256674008881152012-10-30T11:55:25.201-07:002012-10-30T11:55:25.201-07:00Yeah, tell that to the investors.Yeah, tell that to the investors.BOB HOFFMANhttps://www.blogger.com/profile/05158827977385952634noreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-59890297937611446662012-10-24T09:51:12.465-07:002012-10-24T09:51:12.465-07:00Sorry Bob, You're way off on this one because ...Sorry Bob, You're way off on this one because you're mistaking expectations for reality: Facebook was expected to be worth over $100 billion, now it's actually worth somewhat less, so you can easily find people online who will trash it.<br /><br />The reality is that, anyway you slice it, this company is worth a shitload of money because it makes a shitload of money and has fantastic margins (it made $2 billion EBITDA last year on $4 billion in revenues - what TV companies have 50% margins?).<br /><br />So take away any expectations on what they are worth (presently $87 billion) they are bigger than most media companies on financials alone.<br /><br />More specifically on points raised:<br /><br />CTR rates: yes they're low and amazingly shitty. No one really cares, the shittiness is priced in and you can still build traffic because the audience is so amazingly large.<br /><br />Free profiles: Most of the Facebook paid advertising goes to seed promotions on brand pages. So saying they don't monetize their brand pages misses the point.<br /><br />Monetization: I would argue that they are going about monetization exactly right. They are constantly experimenting and trying to come up with innovative ways to make money. When something doesn't work, they drop it and try something else. That's how you innovate.<br /><br />So cut out the bullshit and pick something intelligent to bitch about (like what low CTR rates on Facebook say about the value of all that data they are collecting).<br /><br />Say what you want about, like any company, they make plenty of mistakes, but give credit where credit is due, they've built an amazing business in a very short time.<br /><br />- GregGreg Satellhttp://twitter.com/Digitaltontonoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-45124784536262486022012-05-25T13:53:56.061-07:002012-05-25T13:53:56.061-07:00I'm no underwriter, but it is often the case t...I'm no underwriter, but it is often the case that IPOs lose value in early days. The amazing thing about it is if this happened to any other IPO, nobody would find it remarkable. Remember the sequence in "Citizen Kane" where Kane's affair is revealed right before the election? He loses, which surprises no one except his paper, which carries the headline, "Fraud at Polls!"Tim Orrhttp://twitter.com/timorrnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-12623748135340408892012-05-25T03:28:16.566-07:002012-05-25T03:28:16.566-07:00John Dvorak once wrote in PC Week: "The stock...John Dvorak once wrote in PC Week: "The stock market goes nuts over any company that so much as mentions the word "Internet". All this proves to me is that the boneheads on Wall Street are as dumb as they were in college when they had to switch their majors to business to keep from flunking out."Replace 'internet' with 'facebook', and... it's all exactly the same. Damn.Omairnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-40594899722838900592012-05-24T10:15:17.112-07:002012-05-24T10:15:17.112-07:00Facebook's only value is its data. As I've...Facebook's only value is its data. As I've said before. They know everything about a lot of people stupid enough to share everything about themselves, and there are more of those than I dare imagine.<br /><br />Mark these words: Facebook will update its corporate policy to allow them to more freely shop and use information. Marketers will choose to use that information in ways other than ads on Facebook. Spam filters will be forced to unionize. Facebook will be bought by Rupert Murdoch and then proceed to tank in its entirety.<br /><br />Okay, everything after the first sentence of that paragraph is more hoping than speculating. Can't blame a guy for dreaming.Chris Seigernoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-83720862168779086262012-05-24T09:02:54.069-07:002012-05-24T09:02:54.069-07:00Bob you've never answered my numerous comments...Bob you've never answered my numerous comments here! I used to run Facebook campaigns to dating sites where georgiecaseynoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-10058398449421336072012-05-24T07:27:45.468-07:002012-05-24T07:27:45.468-07:00I'll say it again: $12 is my price, Bob. Then ...I'll say it again: $12 is my price, Bob. Then I'm all-in on this stock. ;)Bob Knorppnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-29543427653790302472012-05-24T06:49:20.164-07:002012-05-24T06:49:20.164-07:00Becasue it's simply not worth the trouble tryi...Becasue it's simply not worth the trouble trying to intercept a personal conversation with a social communication .... it never works to the marketer's benefit ...and never willPaul Benjouhttp://twitter.com/PaulBenjounoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-44822326002123853062012-05-24T03:26:27.397-07:002012-05-24T03:26:27.397-07:00Dennis, how very dare you.Dennis, how very dare you.Jimnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-4176757904373082682012-05-24T01:26:44.918-07:002012-05-24T01:26:44.918-07:00I don't understand why they don't just cha...I don't understand why they don't just charge companies for using the (currently) free profile functionality. Surely it can't be that difficult?Brubinnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-57897405177523832282012-05-24T01:03:40.547-07:002012-05-24T01:03:40.547-07:00Bob,
If you haven't seen it, George Tannenbaum...Bob,<br />If you haven't seen it, George Tannenbaum makes the same point as you in a very funny way here: http://adaged.blogspot.co.uk/gave Trottnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-20167344808968040952012-05-24T00:38:45.441-07:002012-05-24T00:38:45.441-07:00IMHO they have gone about monetising the site the ...IMHO they have gone about monetising the site the wrong way. Charge $1 per month - see what happens. IF people are not prepared to pay for it, it has no value. Ditto Google.Dennishttp://www.ganador.com.au/noreply@blogger.com