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Old 10-29-2007, 10:30 PM
gordongecko gordongecko is offline
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Join Date: Jun 2007
Posts: 151
Default Re: Deal values Facebook at at least 15 Billion Dollars

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but would u click it?

jk good point

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Most ad rates are valued by views, not click-throughs.

Jimbo

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Just because you haven't clicked doesn't mean you haven't realized an impression. Some ad rates are by impressions not clicks. What if a Cheesy Gordita Crunch scrolled across your screen? Well I don't know about you but if its near lunch time, I'd be headed to Taco Bell. [img]/images/graemlins/smile.gif[/img]

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I'm sorry but a large portion of my income has come from online advertsing over the past few years, and I have to disagree with you here. Maybe larger sites such as facebook or myspace work out favorable CPM deals, but a huge huge huge portion of online advertising is PPC or CPA. The only credible ad networks I have seen offering CPM do so with a scale, which is determined by how many people out of say a thousand views click through. CPM was to easy to defraud, and from what I gather has not been offered that much in the past few years. Please correct me if I am wrong though, because I would love to push a CPM program with a few smaller sites I am holding on to.

About this deal. I think MSFT has thought this deal out better than any of us could. They have access to a lot more data than we do, and if they are paying a premium for this small piece I am sure it is for a good reason. I doubt facebook as a whole (or based off just the profits it has made) is worth anywhere near 15 billion, however a company with the means to actually do something with all this data on all of these users (such as msft) it may be worth even more than that. Microsoft also gets exclusive ad rights, so that in and of itself is pretty [censored] sweet. Facebook will likely only get larger at this point (oddly enough I dont even use facebook), and MSFT will get at least 50% of the profits by serving the ads on facebook (not to mention some from their 1. whatever % chunk). This is like google buying youtube. They cornered the online video market, and secured 100% of the profits served by ads on youtube.
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