Facebook will be OK

By on 13 Nov 2008

I’m an eternal optimist about the Web 2.0 revolution.

Wikipedia biased and unreliable? I don’t believe you, nor care.

Blogging only for narcissistic bedroom-dwellers and wannabe-journos? OK, you keep telling yourself that, and enjoy living in the past.

Myspace bloated and irrelevant? Well, they’re still kicking on hard regardless (it helps having Rupert at your back sometimes).

Facebook unprofitable?

Well, yes – they are. And there are no signs of it becoming profitable any time soon either. Keeping 120m members happy doesn’t come cheap. And finding the right way to monetise all those eyeballs is no easy task.

But putting my optimism hat on, I think they will get there.

Why? At BCM we can only speak from experience, and we have recently had great success utilising Facebook social ads. Provided they are relevant to a finely targeted audience and contain a good reason to click (free stuff and competitions help) – you can indeed achieve click-throughs comparable or better than search, to a much more focused audience. To top it off, I can’t help but feel a huge majority of advertisers have no idea about the viability of advertising on Facebook, so those of us who’ve taken the plunge are getting a good deal more attention (but that’s between you and me!). There is much room for growth.

For these reasons – ability to finely target, massive audience, and simplicity – I think Facebook will be just fine in the end. New products like Engagement Ads are driving increased ad relevance. They are going to great lengths to keep advertising on Facebook subtle, and I think they’ll keep it that way. And innovations like Facebook Connect point to much smarter ways of making money.

Don’t write Facebook off just yet. The party is just getting started.

About the Author

Pete Luetjens has written 59 posts on BCM: Two Cents.

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