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Facebook sells highly targeted ad inventory. They may become the most effective advertising platform on the planet.

• philwelch 17y ago
  Do they profit? Or is Zuckerberg still buying his ramen with VC money?
• whopa 17y ago
  Being able to target ads well doesn't do you any good if you don't have the ad inventory to make use of that advantage. That's Facebook's problem: their users aren't apt to click on ads while on the site, so they don't convert very well, hence a lot of advertisers don't bother and their inventory sucks. I've never seen an ad on Facebook that highly targeted me. I think that beyond a few niches (like engagement rings) Facebook's targeting works out to be a wash. That's why despite having 300 million users and billions of page views they are only barely profitable.
• fallentimes 17y ago
  Not sure why you're being downvoted. I've read estimates that Facebook now shows 10% (!) of all U.S. display ad inventory on the internet.
  • jacquesm 17y ago
    How does that percentage translate in terms of clicks ? Is that also 10% ?
    • mediaman 17y ago
      Of course they are lower than average quality impressions. Proportional representation of clicks isn't necessary with that kind of volume.