Facebook is THE success in our history. Even Microsoft nor Google had such a success as Facebook.
There are more than 700 000 more fans each day and many opportunities of increasing the business because Facebook is still not present in countries like China or Russia.
Every quarter, Facebook is valued for more and more billions of dollars!
Facebook is free. It's free for me. It's free for You. It's free for brands. Facebook business model is Advertising and Facebook value is to have nearly 600 Millions members worldwide. We should better say accounts than members because many members have different accounts. For example many companies have a page for Jobs, a page for brands, a page for sponsorship, a page for environmental topics...
Facebook business model, I said, is advertising. As more and more brands try to be on Facebook and to emerge, prices of advertising (cpc and cpm) are increasing these last months. The problem is that there is no depth. Facebook as a huge number of members, but Facebook do not know a lot on these members: age, date of birth, name, sex, company, city, studies, marital staus. Sure it's important, it's valuable and many other companies would be excited to know such things on their customers.
But, regarding Facebook, it means that all companies that want to advertise on Facebook are fighting on the same standards. And this is a risk for Facebook. Now, companies begin to advertise, but soon, they will want to be able to target more precisely.
Google for example is much more powerful because they target adverts on queries with 4, 5 or more words. Which is very valuable.
If prices to advertise still increase, advertisers will ask for more and won't content with demographics.