Tag Archives: Vungle

Do tech companies (and people) misunderstand advertising?

Firstly, let me apologise for writing yet another post that mentions Facebook; I promise, this will not become a Facebook-focused blog. In my defence though, there’s an awful lot happening with it as a business and much of it is incredibly interesting for new age marketers – ie. app developers. So on that note…

There’s been a lot of ink (both real and virtual) expended in recent weeks analysing the current and future performance of Facebook, and putting aside its rollercoaster IPO, much of that ink has been devoted to the performance of Facebook in the advertising realm. A quick whip around the news sees stories about: declining revenues; inability to get mobile right; the loss of GM’s business just prior to the IPO; and of course comparisons with business like Google who did get their advertising model right prior to IPO. Most, if not all the analysis warns that Facebook hasn’t got their advertising model right and that with its weakness in mobile it’s falling further behind. Firstly, this is fairly obvious, but as the actions of GM show, some marketers, some commentators, and perhaps even Facebook itself, seem to have a misunderstanding about how advertisers can make best use of Facebook’s facilities – the key here is considering how users interact with Facebook.

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