Friday 20 July 2012
The Facebook Fallacy ☀
Facebook not only is on course to go bust but will take the rest of the ad-supported Web with it.
Given its vast cash reserves and the glacial pace of business reckonings, this assertion will sound exaggerated. But that doesn’t mean it isn’t true.
At the heart of the Internet business is one of the great business fallacies of our time: that the Web, with all its targeting abilities, can be a more efficient, and hence more profitable, advertising medium than traditional media. Facebook, with its 900 million users, its valuation of around $60 billion (as of early June), and a business derived primarily from fairly traditional online advertising, is now at the heart of the heart of this fallacy.
