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Big Data: Facebook’s next big idea

August 2, 2012 No Comments

The Facebook fallacy is that at its core the Social Network is really an advertising company. The problem is that “Liking” does not translate to “Buying” something.

he Facebook fallacy is that at its core the Social Network is really an advertising company.

If you look at their quarterly report, you see that about 82% of their revenue comes from advertising, so it backs up this assertion. The problem is that “Liking” something does not translate well to “Buying” something.

You may remember that GM recently pulled out as a Facebook advertiser because of this. On the other hand, teaming searches with advertisements so that you can be targeted with advertisements for products you may be interested in buying is a proven approach, and is Google’s strength.

Read the Full story on ZDNET

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