{"id":138,"date":"2012-02-07T17:14:12","date_gmt":"2012-02-07T17:14:12","guid":{"rendered":"http:\/\/www.chrisschweppe.com\/?p=138"},"modified":"2012-02-07T17:14:12","modified_gmt":"2012-02-07T17:14:12","slug":"facebook-is-still-not-a-viable-business","status":"publish","type":"post","link":"https:\/\/chrisschweppe.com\/?p=138","title":{"rendered":"Facebook is Still Not a Viable Business"},"content":{"rendered":"

\"\"<\/a><\/p>\n

I know, I know, you might be reading the title wondering what the heck I’m talking about, but just humor me here. Yes, I know Facebook is not Myspace. I really doubt people are going to stop using Facebook anytime soon. I use Facebook a ton myself. So where’s the substance in my\u00a0provocative\u00a0title you ask?<\/p>\n

Let me sum it up. Facebook’s advertisers are not making money. And make no mistake about it, Facebook is in the advertising business.<\/p>\n

And I’m not the only one who’s seeing red flags. Below is a quote from Veronica Stecker, a media manager from retailer Gordmans Inc, \u00a0in Wall Street Journal story:<\/a><\/p>\n

“We still don’t have a huge correlation between Facebook fans and return on investment in an actual sales in store. Until that metric becomes a lot more solid, I don’t think our company or other brands are going to be full-fledged into Facebook advertising.”<\/p>\n

There’s a monstrous difference between Google and Facebook. Google is a destination. When people are looking for something, they go to Google. Advertisers make money because of that and Google is thus successful.<\/p>\n

The past couple years, businesses, big and small, have been spending money on Facebook as an experiment and\/or because everybody else is doing it. But we’re reaching a point where the economy continues to tighten and people are starting to ask each other, is this advertising even doing anything?<\/p>\n

Facebook may have the biggest tech IPO ever shortly, but I think their biggest challenge lies ahead. Unless they figure out a way to help advertisers make money, which they’ve been trying and failing for the past 5 years, their revenue will dry up. Investors will question the business. And Facebook will be in all sorts of trouble.<\/p>\n","protected":false},"excerpt":{"rendered":"

I know, I know, you might be reading the title wondering what the heck I’m talking about, but just humor me here. Yes, I know Facebook is not Myspace. I…<\/p>\n","protected":false},"author":1,"featured_media":141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-media-marketing"],"_links":{"self":[{"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/wp\/v2\/posts\/138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138"}],"version-history":[{"count":0,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/wp\/v2\/posts\/138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chrisschweppe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}