WoW! No not World of Warcraft, but something that is bigger! Facebook is doing it right. $240 million for 1.6% of a company is an incredible price to pay. What is more amazing is that Facebook is now worth about $15 billion. Myspace at $625 million? Friendster at $zzzzzzzzzzzzzzzzzz.
Facebook differs itself very distinctly in that it offers REAL relationships and networks. Though it was restrictive in its infancy, it has gained a lot of market share due to the fact that it groups everyone together in a real "organized" manner. It laughs at the Top 8/16/24/48. It laughs at the random hook ups and spamming. It laughs.... at Tom.
Its amazing how online advertising has created an economy relying heavily on consumer eyes. To build a portal that is engaging and keeps people coming back is what advertising is all about. The valuations built on these companies are built off the change in reaching an audience. Google succeeded with Adwords, Myspace benefited by selling its user base, and Facebook is right in there selling its base to advertisers.
Facebook is genious to have opened up to platform. Imagine Facebook as a platform to host much more than just a hang out spot to post pics and blogs. It already has over 6000 apps created for their platform to capture a user to see more ads.
Yahoo is coming as well. With their users averaging more "staying" time on their site than Google, we should quickly see them taking more advantage of this.
Next up, MOBILE advertising. Lets see how the WEB2.0 crowd does it.
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