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Facebook will figure out the ad problem - and that's the problem. They're seemingly profitable now on ads (not 100B worth), and through innovation, testing, &
by adamio 14y ago
Facebook will figure out the ad problem - and that's the problem.
They're seemingly profitable now on ads (not 100B worth), and through innovation, testing, & learning revenue will grow or at least not disappear. Advertisers will understand how to use Facebook effectively as an advertising media.
The major problem is lock-in. Facebook's users attract other users, which all attract advertisers. Once Facebook and advertisers uncover a breakthrough in effective social advertising, competition for users becomes critical. What will Facebook rely on to keep others from eating their lunch?
Simplistic, but, Google has search and apps. Facebook has....reluctance to change? Which might just be enough, until its not.