Facebook = Just Another Ad Network?

October 28th, 2007

Will advertising cause the Facebook audience to dart elsewhere?

Forget the $10 billion valuation suggested earlier this month. Make it $15 billion. Insane.

Unless the type of advertising envisioned for Facebook is genuinely revolutionary, it could create a negative backlash among Facebook users. Or, at worst, serve as the pebble in the social networking pond that causes the school of fish known as the Facebook audience to dart elsewhere.

Takeaway for marketers: Someone’s going to have to pay some very inflated ad prices to help justify the numbers.

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