The Facebook Bubble?

Here is a pessimistic take on Facebook from Michael Wolff.

Money quote:

“Facebook is not only on course to go bust, but will take the rest of the ad-supported Web with it.”

The theory is that with ever-declining CPM—cost per thousand ad impressions—Facebook will become the next Yahoo or even AOL. Give its size, it will glut the market and bring down the ad-driven model of the Web.

If this turns out to be true—and it is certainly plausible—we wonder about the inexorable pressure such a meltdown would exert on the company to sell out the remnants of our privacy.

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© The Torrenzano Group, LLC 2016 or earlier

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