FB business is to sell your data. And you don't even need to use FB, as FB is everywhere now! many websites have FB connect options or small FB icons, so everytime you visit these sites, your IP is stored in FB's logs, so that's enough for them to know which serie of websites you have visited, and that even if you are NOT connected to FB! They sell these data as market studies, with profiles of users, "People who like sport predominately like this brand of sockets, or cars ".
Most funny part is that some companies will pay the high price to get this kind of information!
Stupid is as stupid does - buy a newspaper and don't ook at the ads and how much money did they make - nothing - it doesn't cover the cost of the ink - but it counts for circulation which its advertising rates are based on.
You talk valuations, fundamentals, and earnings per-share like that has anything to do with being a trendy momentum investor. A traditional value investor would never invest in FB for just those reasons. Just from reading some of the below postings it points out the basic mentality of the current FB investor, myself included.
When I look at current earnings, both current, and forward growth projections, it scares the shi# out of me from a valuation standpoint. I just keep a tight limit on my position if I'm not on my computer trading. I'm looking for FB to fill the unfilled gap. If it starts to pull-back, I'm out until it's over for sure. I've been greedy before and been stuck holding a stock for two years waiting for it to come back.
Sentiment: Strong Buy
Tjah62 I don't hate FB or even have an account To tell the truth I really don't understand why people use it. I guess they don't have any real friends in the real world so they can have a 100 friends with no emotional or financial obligation. They can be real popular in cyber space. Of the girls where I work it's the crazy ones who use FB. Like a lot of people say most are total narcissist. Kind of like look at me and my boring life no one cares about! LMAO! I don't really care as long as the stock keeps going up. I have a tight stop limit on this position all the time. I don't want to give anything back.
Sentiment: Strong Buy
It doesn't matter what you did. I don't have a facebook account, I think it is kind of silly but I own shares. It may fail but the potential for massive gains is there and I feel it is worth the risk.
FB has to have a way to fudge the numbers to pull in new suckers or advertisers. It's just how long will it be before more is reviled as far as ROI for their advertising dollars and who will get stuck holding the bag before the bell when they drop the bomb pre-market as they always do? You know there's some guy right now digging through Face Books recent earnings just looking for the real numbers. The real numbers, what are they?
You hit the nail on the head. Great Question. Advertisers will have to learn the hard way that although you made the group who actually saw an ad - ad impression - that does not translate even close to a sale. If you dump your browser cookies and don't like anything on FB you become a ghost as far as ad revs are concerned. Datalogix captures your real purchases and your identifying info is matched to fb data as I discussed in my post entitled "Wierd - FB mobile active monthly users are 70% but Ad rev. from Mobile is only 41%", and you are put in a group that actually saw an add - ad impression even if you did not click on it. If you do not buy the product then you are in the fb group that makes no $hay for FB. In other words they can't brag to other potential ad spenders that you are part of the 5x ROI brag group to lure other advertisers to cough up dough for more ad spend. If you have a fake profile on FB then they can't track you at all because your real world purchases cannot be tied back to your FB private info like email phone# and name. You can also opt out of being tracked at all by following the opt out procedure at datalogix. At the bottom of their page click on privacy and follow the procedure to opt out.
Bottom line is advertisers are being conned into Ad spending based on a sampling of 55 ad campaign sampling as mentioned in the recent Conf. Call at around the 12min44sec mark.
Quite a remarkable con job - IMO. Gives new meaning to a sucker born every minute and privacy issues. NSA has nothing on fb. Maybe we get a Snowden from one of the FB workers. Also note privacy is a big reason why fb will be hard pressed to make any money on Instagram from the new video feature if you utilize the privacy settings properly and only post to your friends.
..they sold the info from your account long ago, your viewing gives them another targeted list to provide advertisers , you liked something which had a snowball effect ,and content was transfered.....I would say they gained a lot
Well the list I was put on is wrong. The ads I see are irrelevant and not even close to my interests. For example, I use google and youtube. Those things I participate in actually show me somewhat relevant ads. This sites also require interaction. If I log on to FB and msg. a friend, what info do they get from that?
TV has to pay to show up. FB offers advertisers a pay per click option. So even those ads I saw, not all of them have to pay (even tho I saw the ad).
Since I don't click and participate, all of the ads were of no interest to me. Don't get me wrong, I am biased and I despise FB. However, I actually hold no stake, one way or the other. On the other hand, I am a consumer. I find the force fed ads dribbling in my news feed particularly annoying. There is a few reasons, but mostly this. It looks like a regular post, and I now have people I don't even remotely know, showing up in my feed because they "liked" Morty's wigs. Now I'm not talking about a remote person from High School. I'm talking about a "friend" of a remote person I barely know, that I went to High School with over ten years ago.
My main point here, not only do I dislike the ad structure. The system actually makes me mad. It makes me dislike the Person & Advertiser. It is SPAM, people HATE SPAM!
kd22112000 tried to explain ad targeting to you, but it bounced off your skull. Let the info in, think about the value to advertisers of figuring out which potential customers it is worth advertising to, and let us know if the light goes on for you. Conversion rate for ads is not just about raw number of conversions--it's also about percentage (the "rate") of conversions vs number of ad impressions. And for ad companies that thrive on huge impressions and low click-thru rate (like random low-end things like games/dating), FB has that covered too. They need your non-clicks as much as they need clicks. All grist for the mill, my friend. Grist. For. The. Mill.