Facebook actually dont make much money from advertising even though you think they would- they are desp trying to recoup the funds they paid to buy the site advertising wont cut it - I think they need to take the charging risk and would say lot of research is being done into this (at the end of the day it is about money dont forget)
A separate company actually does a lot of the application campaigns (name escapes me) - FB are looking at charging so they can make up what thy thought they would make in ad revenue - as stated before the problem with Facebook (to the buyer) is that it was not built around an advertising model and the turkeys who bought it didnt think about that before they went in guerilla warfare to buy it before someone else did. The whole industry knows it.
Another problem is a lot of people regsiter with fake details (date of birth etc for privacy reasons) same as on Myspace so a lot of the targeted campaigns dont work and pi**es brands off and is a waste of $(e.g. costmetics advertised to 25-29 yr old women) might go to a 10 yr old as details are fake - sounds like HS have thought of the all impotant revenue model BEFORE the site was built
Think of Myspace and Facebook as lessons of what not to do in SOME respects but the purveyors are always going to have this problem. Hence why I see HS as only having Facebook as part of its model and I think will be more stand alone than solely reliant on Facebook imo. I think its fair to soley rely on FB is risky as who is to say some new site wont come and take over like FB did to Myspace!?!
My thought only but food for thought:)
MMZ Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
