Over the past year, Facebook has implemented functionality to allow its users to ‘like’ posts and even ‘become fans’ of products, services, artists, etc.
These additions were considered great for large and small businesses alike. It allowed unprecedented reach towards a gigantic customer base in key demographics. This reach and visibility made the decision for companies to get involved on Facebook a no-brainer.
Maybe this is why Facebook has had such high valuations. SharesPost currently values Facebook at $11.5B (Business Week). As a user of Facebook and a potential advertising target so to speak, I am not sure I can agree with such high valuations for the site.
Personally, I have not come across any new products, services, or promotions as a result of Facebook. Rather, I have become aware of my Facebook friends becoming fans of products that I already know about. The only products and services I myself have become a fan of are my friends’ start-ups, and this is because I want them to be able to reach a larger audience and be successful.
More often than learning about which products and services my friends are fans of, I am learning about inane concepts and statements they agree with on some level Here’s a few examples of things that Facebook suggests I become a fan of:
So, wait a second. Are people becoming fans of the above phrases, or the concepts? Am I a fan of the concept of going to sleep because my friend didn’t text me back? Or the idea that we don’t lose friends as we get older? Don’t get me wrong, I don’t get annoyed at these suggestions as much as others. I find the delete button to be an easy remedy.
However, At the end of the day, instead of uncovering an intricate goldmine of market research and advertising possibilities, I feel like companies could be learning a lot about the younger demographics that they already know.
- No brand loyalty
- No disposable income
- Tons of time on their hands
As of now, Facebook is making hundreds of millions of dollars on ad revenue, but I am not convinced this is sustainable for an application that we all use to pass some time and talk to friends.
