this morning, when i logged on to facebook i read some ads on the right margin of my home page. pottery barn. a new opi gel nail varnish. christian singles date. faithful men looking to date mature women. ameritrade. a new anti-aging regime. bone density tests. i have a sense that if i logged onto my son eastman’s account, there would strikingly different ads. and if he logged onto my account, there would be a lot of wasted advertising dollars. because he’s a twenty year old dude. he doesn’t want to date faithful christian men, open an ameritrade account, or get his bones tested. and frankly, what does he need anti-aging for when he still has to use a fake i.d. to buy liquor?
advertising is an inexact sport.
ever since facebook went public in may 2012, the shroud of pessimism has fallen over its menlo park headquarters.
share prices on that first day were over $38 but the price has been bumping and tumbling ever since. part of the problem is how to monetize facebook.
say what? you’ve been hearing about how mark is a multi-trillionaire. but yes, facebook actually has had a bit of a “what are we doing here and how do we make money doing it?” problem.
it’s about advertisers and how much they’re going to be willing to pay for playing on facebook. when mark first started facebook, it seemed like the easiest thing in the world would be to allow banner ads–users clicked on the image, were redirected to the advertiser’s website, and for each click the advertiser would kick back money. mark didn’t want to do that. he wanted interactivity: customers expressing interest, encouraged to give word of mouth marketing on a massive scale, and advertisers able to respond to the market with customer driven innovations.
today’s closing share price for facebook is $27.40. a bit of a tumble from $38 but i think the long term prospects are good. if i wasn’t paying my taxes this weekend, i’d definitely be down for some facebook stocks. . . and maybe a bulova. because that first television commercial is making me feel quite nostalgic.