| Here's why I am going to buy: Google's Retargeting product drives insanely strong conversions for clients vs. their traditional adwords. You're able to re-reach folks that, by arriving on your site in the first place, have categorized themselves as interested and, as a result, close at a much higher rate. Google's recent move to consolidate privacy policies, and in effect, sets of customer data is going to provide massively better targeting capabilities. As a result they'll be able to sell the exact same ad-space to advertisers and yet advertisers will see better results, thanks to better targeting. In the "bid-for-space" model this will translate to higher ECPM to Goog, to site owners, etc. Now, enter FB, coiner of the "Social graph" and consolidator of all the things and people. They are doubtlessly working to build and improve their advertising products. They are going to earmark a lot of that $100b to buy large advertising businesses, just like Goog bought AdMob etc, that they believe they can improve ECPMs on. Is it speculative? Absolutely. Does $100b already have a lot of this expected upside baked-in? No doubt. But still, I have seen the future of online advertising and it be profitable. He with the most customer data wins, and FB has that in abundance. |