How the fuck can this internet service be worth 23 Billion ?

OK,
Facebook doesn't sell anything or do any "real" advertising. According to Business.com, Facebook ad revenus total 500 million. And I'm sorry to say, but that is NOTHING. It does not merit being valued at 23 billion usd.

Just to put that in to perspective. The cosmetic company L'oreal had a revenu of €17.47 billion (euros) in 2009 and the company has been valued at 20 billion euros. And they actually produce something. (IE. not virtual)

Hell, vaginal epilation brings in 2,2 billion usd each year. So what I'm saying is that in the big picture, there are porn companies that bring down more money than Facebook.

For anyone with a business degree or background finance. It should be obvious that something is manipulating the figures or "artificially" pushing FacebooK. ((((( Or they are doing something else that no one is talking about )))))

Sorry to say it,
It's conspiracy theory time.

Source : Forbes top 400 richest people.
http://ca.finance.yahoo.com/persona...1836/forbes-400-the-richest-people-in-america

 

Uh, do you realize the advertising potential of owning a website with over 500 million users, something like 250 million of them being near daily users? Facebook is a revenue goldmine.

 

ha you jokin? if anything im surprised its not worth more

 

all i can tell you on that is... get a book on economics 101 and study it.
hopfully you will learn about capital margins and bubbles.
which one of those 2 is facebook?
hell if i know.

 

What part of that it only earned 500 million usd in 2009 is so hard to understand ?

If it earned 1 billion usd a year... Anyone purchasing the company would have to wait 23 years before getting their money back.

Futhermore Facebook and Google are NOT technically really "advertising." What they are doing is similar to selling "billboard" space. And to be honest, most Internet advertising is shit... Pure shit.

There is no really concrete demographic or psychographic data available for media buyers. It's expensive when you compare the cost per thousand versus the cost per sale. And when you require than a thousand people to examin your product or service before making a sale; your product looses its preceived value.

I know what I'm talking about. I'm a university graduate and my major was marketing and my specialty is advertising. Furthermore I have worked as a media buyer for several advertising firms. So I know exactly what advertising is and it is not. Facebook and Google are nothing more than virtual bilboards.

So back to my origional comment...
How does a company that only earns 500 million usd in 2009 get valued at 23 billion ? Obviously there is a missing piece of the puzzle.

Obviously les états-unisiens (americans) need to do some studying too. Look at the margins and bubbles they created to cause the current world recession.

Facebook is like all virtual business. You can pull the plug and the business assets more or less vanish. All you'll have is some computers that will be obsolete inside of 3 years.

My personal guess on Facebook.
They're only publishing their ad revenus. So I'm guessing that they are earning more money from other sources. They must be trading in information and probably have a gouvernement contract (or several)

 

ok, you conclued that facebook is nothing but a bubble.
more then likely your correct. we already gone down the road of one internet bubble bursting.

yeah, facebook does both sell and give away our personal information. they admit to doing that.
as do google, my space, twitter and, so forth.

i'm always learning new things.
one the front, of the current world wide depression were in. not much has been done to control the forces that brough it about and, it does not look like much is going to get done either!
it looks like the powers that be are going to let us go through more bubbles being created, bursting and, depressions; until, the motherload of depressions hits all of us like back in the 1920's.
then we will re-regulate the hell out of capitalist assholes again.

 

That is a good question. Obviously some poor little blighter must be missing the billion dollars.

 

Not only should we regulate the hell out of the capitalist assholes. But we should regulate ourselves.

You know Facebook is said to have 500 million users. If this is true, I'll bet that 99% of those users never have even read the user agreement. And if they won't read that, then it's pretty much clear that they won't do any research into how and where they find their money.

So in so many ways our societies bring these problems upon themselves. Think about how much less shit would have happened in the last 10 years if the average person just started asking questions instead of being spoon fed by the media propoganda machines.

2010 sucks big time!!! And it sucks because the average person has done little or nothing to make it not suck.

 

I find it kind of hard to believe you have a specialty in advertising if you don't consider billboards advertising.

Also facebook's revenue was near $800 million in 2009
http://economictimes.indiatimes.com...neared-800-mn-Sources/articleshow/6063819.cms

2010 is projected to be $1.1 billion,

You should know companies have other assets than just their yearly revenue.

I don't understand what is so hard to comprehend about this, it's like if Comcast had every man, woman and child in Mexico, the US and Canada all watching the same exact thing every single day. The ownership and advertising potential of said program would be astronomical.

 

there is a lot of of marketing information on the site too. Everyone puts up there interestes and what not, that is worth a shit ton to companies.

 

http://youropenbook.org/

This is a fun site

 

It's called directed advertising. I think google pioneered it on the internet. Google and Facebook know more about you than your mother does.

Set your cookies to prompt and you'll find out real quick who follows you around the internet. I've been to sites that tried to put as many as 40 to 50 cookies on my computer for as many as a dozen advertising (billboard) companies. That's the insult, they use your own computer to track you.

.

 

its pretty crazy

 

Isn't something worth as much as somebody is willing to pay for it?

 

I would say that L'Oréal is heavily undervalued, rather than Facebook being excessively overvalued.

Either way, facebook's userbase and the amount of info each user uploads is only going to keep going up. Knowledge is power after all, and others are willing to pay handsomely for access to that knowledge.

 

Billboard advertising is classified as "out of home" advertising.
It occupies the same arena as flyers in the mail. The CPM on all out of home media is high and the return is low.

But unlike Billboard advertising which will allow me to select stratigic areas based on demograhics and more importantly, psychograhics (lifestyle stats and info) of the average person that lives in those areas. The internet can only supply me with a "rebus" or otherwise known as a "shotgun" effect. This approach results in wasted or lost advertising dollars being spent.

Kind of think of it in these terms.
If I owned a diamond store on Rodeo dr. in Beverley Hills... I would not want to advertise my store in billboards placed above a Goodwill second hand cloathing store. Because the average person that shops at those stores could not afford my products. Therefore any ad placed there is wasted money. The expression used in advertising firms in Canada is "like selling radio ads for deaf people."

The Internet has failed consitantly to provide me with any form of verifiable data so that I can effectively target my media purchases for my client's needs.

In short,
A Billboard is only a medium. A conduit to reach potential consumers The Internet is also only a medium. "Real advertising" combines not only creative but the forces of media purchasing and research. Therefore if Facebook (or google) can not provide a firm with actual data.. It's never going to be "on the buy list."

So no, Facebook is not advertising from the "Industry" point of view. It's a piss-poor billboard that is easily ignored.