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Facebook has lost $100B in 10 days and now advertisers are pulling out

business.financialpost.com

191–200 of 282 posts

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#191

Earlier quoted context omitted.

I was recently considering responding to the Facebook recruiter that keeps e-mailing me. Now I'm back to a definite no. These things start with people who are more on the fence.

Are you top talent, though? Facebook recruiters email everyone with a pulse, and some without.

I think I can plausibly claim to be top talent.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#192
post #55

I genuinely believe that advertisers are only pulling out because it's the PR thing to do. There are many other companies that would love to take advantage of a less competitive bid for Facebook ad space and I have no doubt they will be taking advantage of it and will continue to spend boats of money on Facebook.

Two of the largest advertisers don’t think Facebook ads are effective. The latest, P&G, specifically call out how narrow targeting is ineffective.

> After cutting back on certain digital ads, “we didn’t see a reduction in the growth rate,” said Mr. Moeller during the call. “What that tells me is that the spending we cut was largely ineffective.”

https://www.wsj.com/articles/SB10001424052702304192704577406...

https://www.wsj.com/articles/p-g-to-scale-back-targeted-face...

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#194
post #10

I fail to see how this will seriously damage them. They already own the two biggest alternatives to facebook - Instagram for pictures and WhatsApp for communication. More people are using their services than ever before and more people are getting access to the internet in developing countries.

People in US don't really use Whatsapp. iOS users do use iMessage and Android use Hangouts.

I don't see many people in the US carrying Android devices. Everyone I see seems to have iPhone. Android is more concentrated in Asian and South American countries IMO.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#195

Earlier quoted context omitted.

Yes, Facebook's current network is fairly strong, but you shouldn't look to where the masses currently are, you should look to where the trendsetters, the young, and the people in the know—where they are. These people are ahead of the curve, and the signs they are emitting is that Facebook is not serving their interests and needs. Young people don't want to use facebook because it forces you to interact with everyone…

Facebook has no serious competition at the moment other than Snapchat. Young people are still using Instagram and Messenger. Ironically, the calls for regulation might actually end up helping Facebook in the end as they will make the barriers to entry higher.

If people were to switch from using Facebook to Instagram, Messenger and WhatsApp it would be hugely destructive to Facebook's market cap.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#196
post #13

This is the beginning of the Big Churn. Less top talent will want to be associated with facebook. Already even a few more privacy clueless friends family members are deleting their accounts. Adverts were always so low yeild, and fb pages 'because we need one'. Now that is all changing due to perception. The FTC, stocks falling, are further indicatuons of falling trust. And all business is built on trust.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

Oculus has a strong network effect? Since when? Here in India its next to zero.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#197

Earlier quoted context omitted.

Instagram is a completely different app, usage, and completely different UI/UX from Facebook. Facebook's problems are caused by Facebook (website)'s design, trajectory, and business model. It doesn't have anything to do with inherent evilness in the company itself.

I'm replying to the dead comment. The Facebook site is evil and should be destroyed because of 2 reasons, in my opinion. Firstly, the news feed is solely designed to get you to stay on the site for longer. And what that means is you get an echo chamber. So, idiot people get idiot posts that agree with them. It's not just a problem on one side of the political spectrum, it's a problem for any extreme view. Anti-vaxxer…

Do we have to throw the baby out with the bathwater? We can have regulation that bans the use personal information for political ads but allows it for toothpaste ads

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#198
post #13

This is the beginning of the Big Churn. Less top talent will want to be associated with facebook. Already even a few more privacy clueless friends family members are deleting their accounts. Adverts were always so low yeild, and fb pages 'because we need one'. Now that is all changing due to perception. The FTC, stocks falling, are further indicatuons of falling trust. And all business is built on trust.

The share price is now the same as it was mid last year. That means investors are just as confident now as they were then. What information do you have that they don't? Surely you're not claiming to be smarter than them?

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#199
The advertisers leaving is what really hurts Facebook. Remember, you aren't Facebook's customer if you're just a regular user; you're the product.

Think of it this way; imagine a farmer having a bad harvest. that's a lot of pressure, but he or she will try to cope with the loss and monetize what's left cleverly. Now, imagine the same farmer but the demand for the crop is falling. Now that's a capital "P" problem right there.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#200
post #96

Earlier quoted context omitted.

Logging in once a year is meaningless from a network effect standpoint. They might have an account and even use it to talk with grandparents, but without daily use FB has little pull.

They have over two billion monthly active users - not sure the DAU stat, but hundreds of millions would not surprise me.

Not sure why you were downvoted. Their daily user count is 1.4 billion: https://www.statista.com/statistics/346167/facebook-global-d...
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