I’ve said before that one of the big problems with Facebook’s advertising plans is that they don’t really have a lot of profile data to go from.
It turns out I’m not the only one that thinks so. Alex Iskold over at ReadWriteWeb just wrote up a good breakdown of Facebook’s ad system and the problems they face going forward:
There is a myth floating around that contextual advertising is going to help Facebook justify its $15 billion valuation. The myth goes something like this: because Facebook knows everything about us, it will always be able to serve perfect ads. However, the reality is more like the following:
* Facebook does not know much about us
* The data that Facebook has is not structured
* People are not coming to Facebook to click ads
He’s absolutely right. Facebook does not know that much about me. And Facebook is unlikely to have a lot of success selling CPC ads because people aren’t going to Facebook to click on ads.
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