Not Wonkavision

Boring would be an understatement

Facebook’s business model

Facebook makes about 1/10th of Google’s revenues even though they have 2x the pageviews. Some estimates put Google’s search revenues per pageviews at 100-200x Facebook’s.

…The bad news is that, if there is one consistent theme in both online and offline advertising, it’s that ads work dramatically better when consumers have purchasing intent. Google makes the vast majority of their revenues when people search for something to buy or hire. They don’t have to stoke demand – they simply harvest it. When people use Facebook, they are generally socializing with friends. You can put billboards all over a park, and maybe sometimes you’ll happen to convert people from non-purchasing to purchasing intents. But you end up with a cluttered park, and not very effective advertising.

(via Chris Dixon)

Facebook is a social end point, users do not go there to be advertised to so any revenue from ads is a a bonus.

google, with all its changes over the past several years, has become a de facto paid inclusion search engine. The economics of the market, drive ad relevance over organic search relevance. So rather, than harvesting users they are driving users to click on the ads.

(Source: courtenaybird)

  1. bjoneswho reblogged this from wingtipsandloafers and added:
    Also, they never answered my help requests… Just thought I’d… get that part out there.
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  7. sheirafurse reblogged this from emergentfutures and added:
    Very true. Facebook is focused on demand rather than revenue generation: Facebook makes about 1/10th of Google’s...
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    Excellent
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  19. chesnimnus reblogged this from courtenaybird and added:
    Facebook is a social end point, users do not go there to be advertised to so any revenue from ads is a a bonus. google,...
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  21. This was featured in #Tech
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