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With regard to online advertising - companies follow people, people don't follow companies. Facebook gets this. Let's play worst case scenario here - Cuban con
by chaseadam17 14y ago
With regard to online advertising - companies follow people, people don't follow companies. Facebook gets this.
Let's play worst case scenario here - Cuban convinces all companies to leave Facebook. Then what? Do you honestly think there would be a mass diaspora of users because all the companies left? Hell no. Sure, Facebook's stock would plummet, but they'd still have options, because as long as Facebook has users, it has a future.
Now, let's reverse the scenario. All your friends leave Facebook. Then what? You leave too and so do all the companies, because after all, Pepsi doesn't hang out on Facebook to advertise to Coke. If the people leave, Facebook dies.
Facebook isn't a charity, nor a utopia, it's a company that is required by law to maximize value for shareholders. Facebook is already a master of providing value, they've built an empire by doing so. Now they have to learn how to extract value, and it's very smart of them to begin by extracting value from companies in a way that doesn't significantly impact user experience.
But this is just the beginning. Soon, Facebook will begin extracting value from people in more obvious ways. And I'd bet the #1 question on Zuckerberg's mind right now is, "How much shit will people take?" How many ads until everyone leaves?
I don't know the answer to that, but judging by how much shit is forced down the throat of an average American during a 30-minute episode of MTV cribs, I'd bet we'll take a lot more than we realize.