FaceBook ads ‘They Yield No Real Value, And No Profits.’

Image representing Facebook as depicted in Cru...
Image via CrunchBase

Way before pundits took the wheel from GM last week slamming the brakes on advertising with Facebook as an advertising platform, pundits have argued that whereas Google is a search platform that’s psychologically right for the user as they’re open to advertising messages, Facebook is a social platform that’s not due to the user being focused on social interaction.

Apparently those who have advertised on Facebook comment that the giant promotes big returns on ad spending, but many feel like they were burning money and delivered nothing. Worse yet, there’s rumor of a “pattern of generosity” occurring within the pipes of Facebook with some sounding off “ponzi scheme” as if there are odd financial shenanigans going on? Compounding matters further, LinkedIn, Groupon and now Facebook kick started a new trend of investors selling their shares at the IPO. As the WSJ was touting a few days ago, the smart money woke up running, saying that “Goldman Sachs will sell as much as 50%, up from 23% previously. Tiger Global will sell up to 50% of its stake. Previously it planned to sell 7%.”  Clearly it’s like trying to see which side to turn whilst wearing a hoodie.  Oh well, until we know, just kick your agency and blame the advertising, but remember it’s an entirely new territory yet to be tapped. And thus it shall remain until brands, FB and agencies introduce a business model that works in their “Big Idea”  that will get teenagers to pay a monthly fee to host their life stream that is paved with the start-up vanity of bloated relics that promised the holy grail – young loyal spending consumers. The cycle repeats itself.


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