Facebook’s downhill slide

Facebook has been a great story and as human beings we often fall in love with great stories (like Casablanca or The Godfather).

The problem comes when people invest in companies buying a piece of this great story. Unlike watching The Godfather for a n-th time, where the story remains the same, watching Facebook’s shares continue to slide is like seeing Michael Corleone being gunned down by Sollozzo and McCluskey, instead of the other way round.

What happens now? Is Fredo taking over the Corleone falmily.

Without further confusion courtesy of the inappropriate Godfather analogy, I’d like to share this excellent quote from Clemenza, I mean Sharyl Sandberg, Facebook’s COO:

Ms. Sandberg said it would take more time for marketers to figure out Facebook. “It took a long time for the TV market for advertising to be understood,” she told analysts. “We are still in the learning curve.”

Of course, Shotgun Sheryl is right. She basically admits Facebook ads have an abysmally low ROI and it’s up to the marketers to ascend the learning curve. Not to dissect her comment too much but any analogy with TV advertising screams “brand” advertising that doesn’t (necessarily) translate into sales. Also, marketers embraced Google’s search ads and Facebook ads are remarkably similar, except when it comes to results.

The truth is the only ones currently able to monetize Facebook’s users are Zynga and we know how (not) well they are doing lately. Bingo games and more gambling apps will follow.

Update: Social in the enterprise is another matter – see SharePoint with Jabber.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: