Save 50% on a 3-month Digiday+ membership. Ends Dec 5.
Since its IPO, Facebook has been in a world of pain. The AdContrarian predicted as much on the day of the IPO and this week explained the house of cards that not only the IPO hysteria was based on, but also Facebook’s revenue model. Something else to pay attention to: the cascade effect of the dismal Facebook IPO on other social networks and tech companies, as its overvaluation could have tempered expectations from sites like Twitter or Kayak, who may think to go public. It’s quite possible that Facebook single handedly — and simultaneously — popped and prevented a bubble. Maybe.
The amazing thing about the Facebook IPO hysteria is that the whole foundation was built on — as my dear mother used to say — shit and glue. Facebook’s revenue model is dependent on selling advertising space, and there is compelling evidence that paid advertising on Facebook has thus far been uniquely ineffective. But we live in an age in which the marketing and advertising industries trust unreliable and foolhardy pundits and experts more than we trust facts or the evidence of our own eyes… Could it be that the Facebook face plant will serve the purpose of injecting some reality into the fantasy world of advertising and marketing? Not a freakin’ chance.
Click to read the article at the AdContrarian and follow him on Twitter @adcontrarian.
More in Media
Digiday+ Research Subscription Index 2025: Subscription strategies from Bloomberg, The New York Times, Vox and others
Digiday’s third annual Subscription Index examines and measures publishers’ subscription strategies to identify common approaches and key tactics among Bloomberg, The New York Times, Vox and others.
From lawsuits to lobbying: How publishers are fighting AI
We may be closing out 2025, but publishers aren’t retreating from the battle of AI search — some are escalating it, and they expect the fight to stretch deep into 2026.
Media Briefing: Publishers turn to vertical video to compete with creators and grow ad revenue in 2026
Publishers add vertical video feeds to their sites to boost engagement, attract video ad spend and compete with news creators.
Ad position: web_bfu