Facebook’s downhill slide
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.