Facebook IPO’d at $100b market cap. As of today (June 4, 2012), the market cap is barely above $56B.
p/e is still at 68.80.
Overvalued still? Hell yes. Google (money making machine)’s p/e is at 17.53.
Solution to Facebook’s tanking stock price? Stop the hype and bring in more revenue… from people like me, who spend shitload on advertising.
I spend a LOT on advertising. And I mean, a LOT.
How much do I spend on Google. vs Bing. Facebook?
50%.. 40%… and maybe … just maybe,.. barely 5%.
It’s not that the Facebook traffic sucks.. because it does work well for certain verticals, especially facebook games (duh)… but for vast majority of advertisers, search traffic is still cream of the crop.
I do admit.. Facebook traffic works, even for lead generation and ecommerce.
But what DOESN’T work?
How Facebook treats its advertisers.
1) Their API is still closely guarded
Why? No idea. Google’s API is open WIDE.. and they do a good job of approving ads, but for some reason, Facebook is making it hard for advertisers.
Facebook powereditor is the most buggiest bulk ad editor I have ever seen produced by a company that claims to have thousands of engineering talent.
The browser ad manager downright SUCKS… if you try to bulk edit ads (like more than 20), you get nothing but error messages.
Without the API, it’s impossible to automate some of the more mundane things like killing ads that have low CTR… or rotating ads.. or implementing rules, like MOST display ad networks should have.
2) 3rd party Facebook ad “solution providers” are a joke.
The companies that were given the API are “trusted” that they and their clients will not abuse the ad system.. so at least that’s the theory.
From what I’ve experienced, these guys want either some ridulous f*cking subscription fee… or a percentage of spend.
What? I gotta pay more because I’m a GOOD ADVERTISER?
3) Slow ad approvals and inconsistent ad approval policies
It takes sometimes HOURS to approve freaking ads… even if the ad reviewer could see that they are exact same damn ads with slight modifications.
On top of that, upload two SAME sets of ads at different times… one will get approved… other? ALL disapproved.
Why? Who the hell knows.
It’s up to the reviewer to see whether or not the ad fits the advertising guidelines.
If I have a slightly “risquee” ad (i.e. a girl wearing a tank top) and I happen to upload that during a time where people in India or Phillipines are approving, good lord.. apparently, I’m in violation of their editorial guideline.
If you are thinking of buying Facebook stock, try buying ads on Google or Bing.. and compare that to buying ad on Facebook… see who gives u better traffic AND is better at taking your money.
My 2 cents.