Comment Re:Facebook is a horrible media business (Score 1) 295
There are some fundamental problems with Facebook that would prevent major-brand advertisements from purchasing ads there, namely, that it's a viewer-driven site - content comes from the viewers, which is a big no-no among advertisers.
Why would a major advertiser, like Calvin Klein, place their high-end ad right next to some picture of a college kids barf? They would much rather have their ads placed next to a picture of Lara Stone.
THIS is why Facebook only pulls in a few cents CPM, whereas an ad in Vogue goes for $150 CPM.
The more democratic you get, the less interesting you are to advertisers.
My wife is an internet advertising buyer for a very large advertising company (you'd have heard of it). She buys ad space for very, very large clients (think global brands). I know that she buys a lot of ad space from Facebook. Heck, I've been out to dinner with their ad sales people. Companies buy ad space where their demographic's eyes are. It's really that simple.