Sunday, October 7, 2012

facebook business model iterations

As a BIGDATA-miner, facebook social graph is an amazing gold mine we leverage at QMining which lead us to follow facebook chaotic business model iteration.    
I have been quite surprised by at Business Insider article published on Sept 25Th by Nicholas Carison: "It's Become Tragically Clear That Facebook Chased The Wrong Business For Years".
Basically, this article throw away facebook social graph because they still haven't find a way to monetize it properly and that standard re-targeting works. Nicholas, are you kidding? Re-targeting is the simplest way to increase conversions rate. As it is pointed out in the article, yahoo does it since a long time but is this enough to throw what facebook built for several years.  

Yes targeted ads inside facebook don't work well but I suspect that what Nicholas is missing is that the facebook social graph can be leveraged outside facebook. Here is a simple example: I want to measure the persona fit of my conversions and non conversions users? What is the persona fit of X?
Now imagine if you what to mine why people aren't buying and your data are boosted with facebook data. This is just a goal mine Nicholas. Why do you thing google is pushing so much google+. How can you improve ads targetting without powerful info such as user info? How to you think must corporation will optimize their online sales? Social graph is definitely part of the solution, re-targeting is easy. The only reason they haven't done it before is that facebook had no big revenue pressure before its IPO. Re-targeting is the easy part.  




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