Are Facebook Ads Worth It?

June 20, 2012 in Daily Bulletin

Are Facebook ads worth it? Ryan Holiday explained why he withdrew all ads from Facebook:

  • People go to Facebook to interact with friends and so the ads get ignored. In contrast people go to Google to find things and the ads that it serves up might actually be what users are looking for.
  • Everybody who’s tried out Facebook ads has given up on them eventually. Yet the company is still profitable because its success builds upon itself. People hear how big Facebook is, advertise on it, realize that the advertisements are worthless, and stop advertising. But the next group of companies are willing to buy up ads to try them out.
  • Facebook will either have to start charging users money for their profiles, or it will have to figure out a way to get people to actually look at the ads. If not then revenues will plummet.

To read more including how Facebook is like a Ponzi scheme, the odd behaviour of investors in the lead-up to the IPO, Facebook’s sketch “sponsored story” platform, and what Zuckerberg may not even know, click here.

Source: Forbes

Via: Newmark’s Door