Link: The Facebook Fallacy →

Michael Wolff:

At the heart of the Internet business is one of the great business fallacies of our time: that the Web, with all its targeting abilities, can be a more efficient, and hence more profitable, advertising medium than traditional media. Facebook, with its 900 million users, valuation of around $100 billion, and the bulk of its business in traditional display advertising, is now at the heart of the heart of the fallacy.

It comes off as being a tin foil hat argument, but the reasoning is based on simple supply/demand economics. The bottom line: Facebook needs a disruptive idea in order to prove their worth, and it really needs to happen fast.

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