I was really surprised to see both Google and Facebook in user acquisition mode, buying media to get users to open a free email account, and simply going to Facebook ?
I don’t know if this is due to Zuckerberg kicks off Facebook road show but seeing Facebook ads all over the internet is simply weird.
I really doubt there is an ROI model there, where Facebook actually calculates the value of each user coming from acquisition (yearly revenues from ads) and the cost of the ads, and optimizes based on that, it seems more like brute force “lets bring more users”.
The same goes for Google spending on Linkedin to bring more users from LinkedIn to use its email or sites services ? ROI ? I don’t think so, so if not ROI, why are the different social network willing to buy ads on one another to increase users ? branding ? I doubt any of these companies need any branding effect coming from any type of online marketing.
So if you don’t spend money on advertising to generate profits (ROI in user acquisition), and not to create brand awareness, then why ? Maybe they are simply pumping users and each others revenues, maybe Facebook spending on Google, and Google on LinkedIn is simply a way for them to increase prices by creating more users and less ad space .
I don’t think we are in a bubble (yet), unlike experts who see parallels between dot com social media bubbles, but if we keep seeing advertising for services from the companies who sell advertising then we are sure in our way to one.
Google Advertising on LinkedIn
Facebook advertising on Google :