How many of you guys that does not have a facebook account. Facebook has become one trend in social networking. But after having 100 million users the company's revenue are "only" USD 300 million. Scott Carp in his article compared Google and Facebook, since both of websites are free, their source of income would be from the advertisement. The right value proposition for the advertising would generate more cash to Google or Facebook.
Let us take a look at both advertisement word :
Google says:
Reach people actively looking for information about your products and services online
Facebook says:
Promote your website or Facebook Page with highly-targeted advertising. Make your ads even more effective by attaching them to News Feed stories about the users' friends. Receive detailed analytics and reporting through Facebook Insights
In Google's the ads are reaching the people who are searching for it. For example, you are googling for Computer and there are several ads came up next to the search result. There will be high possibility that users will click on the ads. This match the value for advertiser and also the user. Hence Google has benefited from its value proposition to the advertiser.
Facebook, in the other hand, there is a gap between advertiser value and user value. The facebook users most likely do not care if they could find an ad in their friend's newsfeed. It is just not what the users are really looking for when they are using Facebook.
Well, in the web, until now, the best way to align the advertiser value and user value is via search engine...
What do you think??
4 comments:
is this site all about copy and paste???Where is the content value?
it was the summary of the article!!
The article basically state that Facebook only making "small" amount of money due to the in-alignment of user value and advertiser's, thanks
Well, actually I think it needs to do with business model rather than number of subscriber. Also, google has many other services that help solving people's problem. Google search engine help people to find information and bridge between consumers and sellers. However, facebook only link between buyers and buyers like us. Thus, how can they make more money?
Nice article Dimas TQ-mashita for posting it. A good example of how value proposition backed up by a good business model is essential for being a profitable eBusiness.
Post a Comment