Quote:
Originally Posted by AdmiralAkbar
The point is currently, Facebook utilizes a majority of 100% text ads, most of which do not even have the destination site in them. If I were to click on the "$100 a night hotels in NYC" link, I could be taken to hotels.com, priceline.com or anything else. They have achieved no branding at all by putting that ad there.
While you are right about the Google "ad-words" making a tidy profit, they also make a huge profit off the "Sponsored Links" at the top of your search. Go to Google and search for hotels, and check out the first 3 links (all of which are probably relavent to what you are looking for, and probably what you were looking for anyway). That one click on the "Sponsored" Expedia.com link just made 100-1000 times what a page view on Facebook did. |
Correct. I think the bottom line is that Google has a means of making money off of ad-content that can survive changes in the market (via making money off of other 3rd-parties when the current ones aren't profitable anymore), whereas Facebook has basically one revenue stream (embedded ads), and if that dries up, then they are basically a free service that is not generating any income.