Comments on: New advertising strategy is a big gamble for Facebook

The company is proceeding with caution in an attempt not to irritate its fickle user base, but it nevertheless still runs some big risks with its new advertising program.

[Albert Maruggi]

Facebook Social Ad Game - The More Specific The Better

If I read it right, signing up as a fan attaches my name to an ad served up to a friend of similar interest or if they are in a relevant group.

The more general the ad the less likely it will be for someone to giveaway their endorsement. However, if the ads are specific this has a nice feel to it. For example, if I like a certain halibut recipe, http://tinyurl.com/247kox, then some friend looking for fish will get my recommendation.

If however, it's just a blanket I like Chevy ad that runs randomly, not based on where my friend goes then it is less useful and more spamful.

By the way, the recipe is halibut with carrots, fennel, lemon, and garlic. Now what wine goes with that? See if I had an ad right now, that would be perfect.

[laserfix]

Facebook Problems

Facebook is resorting to this strategy because of a fundamental flaw with their product: it's boring. It has no zing. The target demo is not dramatically enrolling in droves. And the target demo lacks latino and black attraction. So, the answer? Sign up big companies and try to maintain the fantasy a little longer. Six months from now: Facebook Who.

[Jesse Chan]

Does it justify their $15 Billion price tag?

Does this play by Facebook to launch its advertising platform -- Social Ads & Project Beacon -- justify its current price tag? If the advertising play is successful, then "yes" what if it isn't, what is their estimated P/E ratio? http://fishtrain.com/2007/11/07/facebook-valuation/

[Fireweaver]

Facebook for 15 billion

There's no way that Facebook is worth 15 billion dollars. It's one of the top 2 heavies in Social Networking in the US but someone please try to show assets or predicted income that even comes close to justifying that price tag.
Hype Hype Hype.
It's good to see that the dot com frenzied stupidity of investors hasn't gone away completely

[aSiriusTHoTH]

Facebook who? Oh... duh...

Facebook who? Oh yea.. the website that is doubling the amount of signups per day over myspac.... Oh duh.. yea.. that website...

It won't be facebook who in 6 months. That is a very big under estimation of an extremely popular website. And a very bad forecasting of an extremely popular website.. on your part.

[revenge666]

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