Facebook now has 300 million users and became cash-flow positive last quarter, perhaps a year ahead of projections, according to the Facebook blog.
Suddenly, say pundits like Alex Salkever of DailyFinance, Google should consider throwing in the towel.
That’s because 80 percent of brands are now advertising on Facebook, and the ads are better- targeted and more cost-effective than Google pitches, which can’t go viral like Facebook ads, Salkever explains.
Missing in this glowing he-drank-the-Kool-Aid report about Facebook’s ad business is the oft-heard caution that most Facebook users regard the site as a place to share information, apps and images with friends, family and colleagues and resent the intrusion of e-commerce.
And, if 80 percent of brands are now advertising on Facebook, I guess I’ve missed them.
My Facebook page today has one advertisement, and it’s a display ad from All Nippon Airways.
The ad beckons:
“Want sumo, Harajuku or Mt. Fuji? Well Japan’s the place! Let ANA take you there in comfort and style. Click here for our lowest fares.”
One Facebook-ish thing about the ad is users can indicate whether they “like” the ad or not … potentially giving the ad the aforementioned viral send-off. However, I note that you can’t comment about the ad as you can when you indicate whether you like a Facebook friend’s status update. So, the absence of commenting provides a little brand protection, I guess.
On the ANA ad’s landing page, there is a booking engine, and everything from promotions for the ANA Mileage Club and the Star Alliance to a pre-boarding guide.
However, Facebook’s supposed super-targeting abilities are a bit off, in my case. I have never traveled to Japan, and while I would like to someday, such a trip is not on my agenda.
All I’m saying is that Facebook may eventually become an effective advertising platform and it could even challenge Google one day because we all know that industry leaders can’t retain their perches forever.
But, let’s hold off on annointing Facebook as the Google-killer for now.
I think Google will continue to attract a few ads from travel companies and a few other brands for the time being.