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Facebook a Ponzi Scheme?


natty

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http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme

Pretty interesting to think about. The gist of it is that ads on facebook are worthless and once everyone tries advertising on facebook and sees how worthless it is then facebook loses all it's revenue, just like a ponzi scheme.

I'm no marketing guy but I don't quite buy that facebook ads are worthless. I think it'd be great for branding.

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even TV ads are taking a hit the more people use and have DVRs..

Have you ever bought a Facebook ad? I have. I have talked to many, many people who have. We have spent hundreds, many have spent thousands or even more, experimenting with Facebook ads. They are worthless. Nobody ever looks at them, and nobody ever clicks on them.

Facebook ads, on the other hand, annoy users. They yield no real value, and thus no profits.

I'm curious who this little man and his blog are... what his target audience was, how long he advertised and who "all these people" are that he talked to..

I've advertised the same amount as him, which didn't yield any results, and didn't try but once..

curious about his credibility... he certainly isn't speaking for the majority of advertisers, since he is but one person...

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granted a large portion of the population doesn't have DVR, but the more and more common they are TV ads are even taking a hit..

as for FB...you are targeting millions of people and might only expect .001 percent to respond. perhaps a little better, but there are business minded people in a position who will see a certain ad and respond.

an ad is just an attempt to come across someone's screen at just the right time..

it's just the law of large numbers.. if you are only advertising on FB, you are barely even marketing.. there are plenty of avenues that most advertisers should be hitting to be effective, and not just online..

I have done a Facebook ad on there before, but not for anyone to buy anything. Its not a bad deal....its like $12 every 2 weeks or something

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I have done a Facebook ad on there before, but not for anyone to buy anything. Its not a bad deal....its like $12 every 2 weeks or something

I edited that post..

yeah, I've advertised as well.. same amount the blogger talked about...

anyone spending money on FB understands that FB is but one avenue to advertise..

depends what they are selling as well and if FB is even a reasonable avenue...

I put in $100 for the month.. but I wasn't really expecting much from it..

I've never understood why facebook is so valuable. If it's true that there have been offers of billions of dollars to buy it, Zuckerburg better sell that shit immediately before someone figures it out.

I'm not really buying that article too much.. where there is a stream of millions of people, there are advertisers waiting, cash in hand..

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the real scheme is the idiots that add the fake friends that sell uggs and jordan heels. i get sick of looking at those things over my wall

as for the adds, i have adblocker. never know they exist

Never understood why people accept friend requests from people they dont know.

Its not myspace, its facebook. I dont know you, I dont wanna be ur friend.

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facebook is an advertisers dream. your own exhibitionism provides them with targeting/segmentation opportunities that they can only dream of in other outlets.

the only thing that rivals it right now is the information that is collected by retail analytics and market research firms that purchase data from experian and other credit agencies. every purchase you make on a credit card is used to create a profile of who you are, what you like, and what you buy. the data is geocoded and retailers are buying this information aggregated at various geographic levels (for trade areas around their stores) to customize their advertising and product mix. yep. that really happens. the only thing better than advertisers having access to you saying what you like is for them to have access to data proving what you actually like. the days of using demographics are over. its all about psychographics and revealed preferences these days. and facebook is right there making killer dough thanks to all of their users' collective exhibitionism.

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