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%.
Why?
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?
Ri-FUCKING-diculous.
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.
Seriously, WTF.
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.
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Everything you mentioned about advertising is why I decided not to build Facebook Apps and instead turn them into entire sites. I want advertising specific to my users, I also want my users to be able to upload advertisements, but no Facebook does not allow that, instead as you said you have to go to their shitty advertisers, who want to pay you absolutely shit, $2 or less per 1,000 views??? That sucks ass. And many require that you have millions of displays a day, one company told me I can’t use them unless I can have the ability to display 50 million ads a month!!!
I am creating a Niche Social Networking site, i want my ads to pertain directly to my users interests, not some random BS banner ad. I want users to upload ads and other users to view them and even choose what types of ad to view.
Also I wanted certain users to be able to sell items, and I have a point system in the site, but Facebook does not allow you to monetize your app by selling items or selling points, you can only use their Facebook coin system, where they rape you 30%, yeah 30% WTF
Facebooks advertising policies suck, so now instead of building cool apps, I am building cool sites that tie into not only Facebook, but MySpace, Google+ and Twitter.
After I finish this first site, I plan on building a better social networking site, one that is not SOOOOOOOOOOO SLOW, one that does NOT CHANGE ALL THE TIME, one that does not force the changes on it’s users when they don’t want it.
Facebook is going to make it super easy for the next great Networking site to take it’s user base the way they did MySpace.
And I’ll be laughing all the way to the bank!!!!