moTi - 4:07 am on Nov 22, 2010 (gmt 0)
buying mode vs entertainment mode is really no rocket science. the news that social networks like facebook utterly underperform in selling products for their advertising partners is out for years. they know it, we know it.
it reminds one a bit of yahoo before google stepped into the market. until then, the sales team managed to sell ad spaces on their web portal for horrendous prices. but the problem for facebook is, now that google is there, you already have the comparison. you know the perfomance indicators. too bad for them.
so what will facebook do? a strong advertising sales team would certainly help to convince businesses on the short-run to continue trying their luck and sink thousands of dollars each into the network. until everyone has their fingers burnt. secondly, the fact that meanwhile a huge consulting industry has built around social media marketing will also contribute. but after that?