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Originally Posted by Mr. Sandman
I must be getting old...I still don't see the mega appeal it has. I guess it is human nature to want to know everything about your friends. Frankly, I really don't care and every time I use facebook ( I have to force myself to use it) I keep asking myself why is this so popular?
I have never clicked or barely noticed these ads. Like? I think I liked a couple things but what is the point of "liking" something?
As for money? They are already billionaires...this IPO is gravy. Honestly I don't think the SEC should allow them to do an IPO, they don't need capital. The purpose of the going public is to raise capital to develop new technologies or expand not to "cash out"
And it just does not add up! if they get 0.05 cents per click and all 800mil click that is 40 mil. , they would need everyone clicking all the time. I still can't see what they are selling and why it is THAT valuable and who is in a position to pay them. It is not 5 cheesy ads on the side, this can not be the primary source of the revenue.
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An aquaintance of mine twenty years ago owned a printing business that mailed out those local business coupons, in envelopes, maybe twenty or so in each mailing. He and other businessmen in the same businesss paid a company to do a survey for them to help them run thier business more efficiently. The survey company found that a person who received those coupons in an envelope at thier house and actually opened them had to read them twelve times before they recognize any one company whose advertised this way, twelve times, and they still thought it was worth it. At least in those envelopes you could feel the pulse of the consumer. As you said I don't know how these companies that advertise on Facebook can do so. And then to have someone put a value to it. Pie in the sky economics. Actually more like pie in outer space economics.