Facebook may be targeting more traditional big brand advertisers than it is small business advertisers (who need ads to convert to sales in a much tighter window). e.g., the Coca-Cola commercial you see on TV probably doesn't make a single person get up out of his chair, go grab his car keys, and drive to the store and buy a Coke. Yet, over time, get exposed to enough of those ads, and when it's time to buy, your hand instinctively goes for the one your brain is bombarded with ads for all day.
Then again, Facebook ads give advertisers much less of an "in your face, brainwashing you against your will" impact than TV commercials do.
This might just be a case of a revenue model that simply doesn't fit the platform. It may be that Facebook is going to have to figure out another way to justify its high P/E ratio.
Then again, Facebook ads give advertisers much less of an "in your face, brainwashing you against your will" impact than TV commercials do.
This might just be a case of a revenue model that simply doesn't fit the platform. It may be that Facebook is going to have to figure out another way to justify its high P/E ratio.