SirBryghtside said:
CrystalShadow said:
SirBryghtside said:
lacktheknack said:
MarlonBlazed said:
You think this is because [a href=https://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1338580800000&chddm=3910&chls=IntervalBasedLine&q=NASDAQ:FB&ntsp=0]there doing so well on the stock market[/a]?
Holy balls, what happened?!
From what I vaguely remember hearing on the radio a couple weeks back, they don't actually have a system of making money. The adverts apparently don't give them much at all.
I don't get it either. I either missed something or they are the most colossal idiots the world has ever seen.
It seems a common problem with web services. The problem is, people come up with some interesting idea, then turn it into a 'business'. Except, as interesting and/or useful as the idea itself is (not saying facebook is either, but let's leave that for another discussion), these services frequently aren't designed very well from a commercial perspective.
Or rather, they're great at what they do, but not so great at bringing in money.
The people that made twitter for instance still haven't figured out how to make any money from it at all.
Facebook meanwhile has hundreds of millions of members, and still can't seem to make a decent revenue stream? It makes you wonder...
At least the 'free to play' games model works quite well. That's built around the idea that only about 1 in 100 players will ever pay you anything, but those that do will earn you more than enough to cover the cost of the other 99 'free' players.
...so why can't they just... use adverts? Preferably ones that work? Like
every other commercial site on the internet?!
Is there something I'm missing? Please tell me there's something I'm missing. No company can be this stupid.
Web advertising clearly isn't that reliable. Look at the escapist for instance. I have a subscription, but ask yourself why that exists? And why the ads by all accounts have been getting more & more intrusive?
Remember the scandal surrounding extra credits?
Do you recall they said many of the content providers weren't getting paid?
OK, generalising that isn't a great idea, but it really doesn't seem to bode well for the idea that advertising is a reliable source of income.
Aside from which, facebook should in theory be rolling in it if that were true, since their adverts (on paper at least) are ideal from an advertiser's point of view - advertise directly to people that you know are likely to want your product, and not to anyone else.
Seems perfect.
So why then would facebook be showing signs of such financial issues?
Perhaps a better questions is looking at the companies that clearly
can make a lot of money from internet advertising. (Google for instance.)
What makes them good at it where so many others struggle?
It's all well and good saying 'advertising!', but getting that right isn't as easy as it sounds, clearly.