Best argument on why Social Networks are overrated
October 13, 2007
Google Blogoscoped citing Jason McCabe Calacanis at a discussion in front of a crowd interested in Facebook issues.
<<Social networking is second only to chat rooms as being the lowest CPM, the worst place to advertise… that’s not gonna change. And the reason for that – and this has nothing to do with Facebook, MySpace has the same problems – the reason is the content of your friends and family is more compelling than any advertisement will be.
This is why the comments in the last panel were so foolish about it being so competitive to Google, because Google has the greatest advertising in the history of media ever created… which is search advertising. When you type a word into the box, we know what you’re looking for.
When you’re on Facebook, we know you’re looking to meet a girl or a guy, or talk to your friends or your family. It’s a terrible platform to advertise, it always will be. It will always be low CPM, but high page views that make it up in volume. It’s a terrible, terrible way to make money.>>