There is yet deeper issue that applies to all advertising, in the form of a simple natural law:
There is a limit on the amount of BS a person can take before taking steps to actively avoid it or at least 'tuning it out'.
Current business 'thinking' assumes that increasing advertising is always good. It does not acknowledge this saturation effect at the 'receiving end'. It essentially ignores the fact that everyone else will also advertise more and more, for diminishing returns.
The trouble with advertising is that it is like a shouting match: occasionally someone with a strong voice will obtain a temporary advantage but in the long run nobody can be heard properly, least of all modest people with something useful to say.
On a more prozaic level, dividing the FB valuation by its number of active users gives about $170. I doubt very much that an average active FB user is buying enough value from FB ads to justify this kind of advertising budget.
There is yet deeper issue that applies to all advertising, in the form of a simple natural law:
There is a limit on the amount of BS a person can take before taking steps to actively avoid it or at least 'tuning it out'.
Current business 'thinking' assumes that increasing advertising is always good. It does not acknowledge this saturation effect at the 'receiving end'. It essentially ignores the fact that everyone else will also advertise more and more, for diminishing returns.
The trouble with advertising is that it is like a shouting match: occasionally someone with a strong voice will obtain a temporary advantage but in the long run nobody can be heard properly, least of all modest people with something useful to say.
On a more prozaic level, dividing the FB valuation by its number of active users gives about $170. I doubt very much that an average active FB user is buying enough value from FB ads to justify this kind of advertising budget.