Comments on: Facebook: Why Microsoft’s buy makes sense http://www.mathewingram.com/work/2007/10/24/facebook-why-microsofts-buy-makes-sense/ ... at the intersection of media, technology, business and the web Mon, 01 Dec 2008 21:50:15 +0000 http://wordpress.org/?v=2.6.2 By: Daniel Gibbons http://www.mathewingram.com/work/2007/10/24/facebook-why-microsofts-buy-makes-sense/#comment-335428 Daniel Gibbons Thu, 25 Oct 2007 22:06:59 +0000 http://www.mathewingram.com/work/2007/10/24/facebook-why-microsofts-buy-makes-sense/#comment-335428 Microsoft may very well get to serve ads to those devoted users, but the ads themselves are some of the worst performing, cheapest inventory out there. Lots of people have made this point before, but Google mints cash because people are searching for things when they see ads. On Facebook the ads simply interrupt the personal interactions that are the reason people are there in the first place. I don't think that means there's no hope for advertising on Facebook; rather that attempting CPC and CPA models may actually not be as effective as more traditional brand advertising and sponsorship. Microsoft may very well get to serve ads to those devoted users, but the ads themselves are some of the worst performing, cheapest inventory out there. Lots of people have made this point before, but Google mints cash because people are searching for things when they see ads. On Facebook the ads simply interrupt the personal interactions that are the reason people are there in the first place.

I don’t think that means there’s no hope for advertising on Facebook; rather that attempting CPC and CPA models may actually not be as effective as more traditional brand advertising and sponsorship.

]]> By: Alexander van Elsas http://www.mathewingram.com/work/2007/10/24/facebook-why-microsofts-buy-makes-sense/#comment-335414 Alexander van Elsas Thu, 25 Oct 2007 05:26:58 +0000 http://www.mathewingram.com/work/2007/10/24/facebook-why-microsofts-buy-makes-sense/#comment-335414 Well, I'm starting a countdown on the downfall of Facebook as they are going to focus even more on network value instead of user value Increasing ad pressure on the user will turn them away to better and more open alternatives in the end: http://vanelsas.wordpress.com/2007/10/24/counting-down-the-downfalll-of-facebook-as-they-set-to-introduce-major-ad-play/ Well, I’m starting a countdown on the downfall of Facebook as they are going to focus even more on network value instead of user value Increasing ad pressure on the user will turn them away to better and more open alternatives in the end:
http://vanelsas.wordpress.com/2007/10/24/counting-down-the-downfalll-of-facebook-as-they-set-to-introduce-major-ad-play/

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