Sunday, June 3, 2012

To Facebook's Chagrin, Time Spent Online Doesn't Equal Money -- Yet

Consumers Spend Days on Social Network, But Advertisers Still Spend Bulk of Dollars on Google

It's the stat that filled a million PowerPoints, launched thousands of startups and dashed almost as many hopes: the hockey stick charting consumer growth of the internet -- and the presumed shift of ad dollars along with it. 

The opportunity represented for Facebook in the gap between time spent and ad spending was forcefully argued by Needham analyst Laura Martin, who helped stop Facebook's stock-price slide when she slapped a "buy" rating on the stock. "We believe that Facebook should have higher revenue than Google over time because the number of users is about the same but the average time spent on Facebook is 14 minutes per day, which is nearly three times's five minutes per person per day," she wrote in a report. Read the rest here

No comments: