My good pal and business partner Andy believes that Zuckerberg and his pals will have “a tough row to hoe” when it comes to monetizing the FB platform. Facebook’s valuation right now is at about $15 billion. This is all based on the notion that there’s some way to make an awful lot of money off the system.
But, like Andy said, it won’t be easy. Read/WriteWeb agrees:
There is a myth floating around that contextual advertising is going to help Facebook justify its $15 billion valuation. The myth goes something like this: because Facebook knows everything about us, it will always be able to serve perfect ads. However, the reality is more like the following:
- Facebook does not know much about us
- The data that Facebook has is not structured
- People are not coming to Facebook to click ads
Like the author says, monetizing the beast isn’t impossible, and there’s certainly a team of bright folks running the FB show. The next few years will be very interesting on the social networking tip.