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Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

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Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#3
post #2

It will be interesting to see how much of that revenue came at Google's expense.

I realize both are competing for ad dollars and can be called competitors for that fact [1], but my own use of them really doesn't overlap. I use FB for interacting with friends and family, I use Google for interacting with the rest of the web. FB's search is not optimal and Google+ is well... it's not something my parents or my kids are going to use. There's not much overlap in my video viewing habits either. I don't sit down to watch a video on FB. How would I even find something to watch on FB? YouTube search is incredibly impressive and satisfying. I'm sure FB and Google would like to take more of each other's markets, but I don't see how they would do that. I may be projecting, but I think most people are satisfied with two great services and don't feel the need for one that does it all.

[1] http://www.inc.com/peter-roesler/google-vs-facebook-3-things...

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#4
post #2

It will be interesting to see how much of that revenue came at Google's expense.

I realize both are competing for ad dollars and can be called competitors for that fact [1], but my own use of them really doesn't overlap. I use FB for interacting with friends and family, I use Google for interacting with the rest of the web. FB's search is not optimal and Google+ is well... it's not something my parents or my kids are going to use. There's not much overlap in my video viewing habits either. I don'…

The impact would be lower CPCs for mobile ads. People moving their ad spend over to Facebook from Google. One of the interesting myths people used to believe in was that adding a new advertising platform would add more ad dollars to the digital economy. However, the pool of ad dollars is finite, the people who spend them have fixed budgets so when they shift them to new inventory they take them away from somewhere else. And the way that is reflected in Google's number is their auction system for ads gets lower bids as fewer people are competing for various spots.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#5
Hopefully for their investors' sake that revenue isn't significantly driven by click fraud, a rumor that's been circulating for years http://thesocialmediamonthly.com/startup-ceo-alleges-massive...

* Is anyone aware of evidence of the extent of click fraud on Facebook? I see a lot of discussion about it but not a lot of data.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#6
post #2

It will be interesting to see how much of that revenue came at Google's expense.

Google is all about searching for results and Facebook is all about demography and thus brands.

So Facebook is taking a lot of advertising budget to establish brands that used to be for print and television.

Simple example: Diapers. By the time you have a baby, Facebook knows that you as a couple are expecting and you will see ads establishing relevant brands. You would never see those ads on Google, because at that time you're not searching for them. This used to be the business of television advertising. So you know the brand Pampers long before you ever think of buying a pack of them.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#7
Facebook is the biggest scam for most businesses.

1) They've pulled bait and switch when they decided to charge to reach users that have already liked your page. Most of those users liked your page because you've posted a link to FB on your site.

2) Click fraud is rampant [1]

3) They make money on copyrighted videos + ripping off YouTube content creators [2]

[1] https://www.youtube.com/watch?v=oVfHeWTKjag

[2] https://www.youtube.com/watch?v=t7tA3NNKF0Q

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#8
post #2

It will be interesting to see how much of that revenue came at Google's expense.

Google is all about searching for results and Facebook is all about demography and thus brands. So Facebook is taking a lot of advertising budget to establish brands that used to be for print and television. Simple example: Diapers. By the time you have a baby, Facebook knows that you as a couple are expecting and you will see ads establishing relevant brands. You would never see those ads on Google, because at that…

You are correct, though it's worth noting that advertising spend as a % of (American) GDP has been constant for a long, long time [0]. FB and Google are probably still competing for money that was previously spent on TV/Radio/Periodicals, but still, everyone's competing for a slice of the same pie.

[0] http://www.bloomberg.com/bw/articles/2014-03-03/advertisings...

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#9
post #7

Facebook is the biggest scam for most businesses. 1) They've pulled bait and switch when they decided to charge to reach users that have already liked your page. Most of those users liked your page because you've posted a link to FB on your site. 2) Click fraud is rampant [1] 3) They make money on copyrighted videos + ripping off YouTube content creators [2] [1] https://www.youtube.com/watch?v=oVfHeWTKjag [2] https:/…

To say Facebook is the biggest scam is too extreme. Click fraud exists on every single platform. Pay a hundred mechanical turk and they can click for you all day long.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#10
post #5

Hopefully for their investors' sake that revenue isn't significantly driven by click fraud, a rumor that's been circulating for years http://thesocialmediamonthly.com/startup-ceo-alleges-massive... * Is anyone aware of evidence of the extent of click fraud on Facebook? I see a lot of discussion about it but not a lot of data.

I dont have data but whenever I buy likes on page they seem to come from people who are totally fake.
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