Comments on: Don’t Make A Facebook Mistake: 3 Questions http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/ Living the Digital Life Sun, 21 Mar 2010 10:45:07 -0700 http://wordpress.org/?v=2.9 hourly 1 By: Micahville http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/comment-page-1/#comment-253 Micahville Wed, 18 Jul 2007 00:34:00 +0000 http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/#comment-253 Thanks for the input Simon. I think that your point about Facebook cashing in on its "graduates" after they have made money. Since surveys show that Facebook users make more on average , wouldn't these users spend more on the services offered by the advertisements? Good point. Thanks for the input Simon. I think that your point about Facebook cashing in on its “graduates” after they have made money.

Since surveys show that Facebook users make more on average , wouldn’t these users spend more on the services offered by the advertisements?

Good point.

]]> By: Simon Owens http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/comment-page-1/#comment-246 Simon Owens Mon, 16 Jul 2007 22:15:52 +0000 http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/#comment-246 I think the way of measuring its advertising success is flawed. For instance, measuring click-through rates is only relevant if the profit from the ad comes from a click-through. If it's a movie advertisement, then clicking on the ad does nothing for the advertiser. It only matters if someone goes out and sees the movie. Facebook has a brilliant localized classified system, so that if a college student is looking for a roommate or to sell a piece of furniture, the classified ad will be displayed for that university's network. Plus, unlike Myspace, the ads don't slow the site's loading ten-fold As for college students being too poor, every year a new class graduates, and they usually continue to use facebook once they get into the work force. I think the advertising success will come a year or two down the road when a significant percentage of its user base has gone on to high-level jobs. I think the way of measuring its advertising success is flawed. For instance, measuring click-through rates is only relevant if the profit from the ad comes from a click-through. If it’s a movie advertisement, then clicking on the ad does nothing for the advertiser. It only matters if someone goes out and sees the movie.

Facebook has a brilliant localized classified system, so that if a college student is looking for a roommate or to sell a piece of furniture, the classified ad will be displayed for that university’s network.

Plus, unlike Myspace, the ads don’t slow the site’s loading ten-fold

As for college students being too poor, every year a new class graduates, and they usually continue to use facebook once they get into the work force. I think the advertising success will come a year or two down the road when a significant percentage of its user base has gone on to high-level jobs.

]]> By: Omer Zach http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/comment-page-1/#comment-236 Omer Zach Mon, 16 Jul 2007 12:18:48 +0000 http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/#comment-236 From what I've observed with similar web stuff, I would certainly think about investing in Facebook, although I wouldn't be willing to risk any significant sum of money (in anything, of course). From what I’ve observed with similar web stuff, I would certainly think about investing in Facebook, although I wouldn’t be willing to risk any significant sum of money (in anything, of course).

]]> By: Aidan Henry http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/comment-page-1/#comment-233 Aidan Henry Mon, 16 Jul 2007 03:30:08 +0000 http://www.micahville.com/2007/07/15/dont-make-a-facebook-mistake-3-questions/#comment-233 Hey, Thanks for the nod. I use Facebook a lot and I really like the service. I find it to be very different from all the other social networks, as it encompasses my ACTUAL circle of friends. Having said that, the valuation would have to be reasonable for me to invest in the company. My biggest concern is the fact that they have been unable to prove out a revenue model thus far. Nevertheless, I still think their future prospects look optimistic to say the least. Cheers, Aidan www.MappingTheWeb.com Hey,

Thanks for the nod. I use Facebook a lot and I really like the service. I find it to be very different from all the other social networks, as it encompasses my ACTUAL circle of friends. Having said that, the valuation would have to be reasonable for me to invest in the company. My biggest concern is the fact that they have been unable to prove out a revenue model thus far. Nevertheless, I still think their future prospects look optimistic to say the least.

Cheers,
Aidan
http://www.MappingTheWeb.com

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