Why Advertisers Still Don’t Understand Facebook, MySpace, and Vice Versa

What is sad is that you can make a Higher CPM proxying Facebook, than Facebook makes on it’s own impressions.  Part of the problem is that Facebook sets huge numbers for their minimum ad requirements and is still selling on a Cost Per Click Basis. They would do much better on Cost Per Impression ads to build Brandwidth for fortune 1000 companies.  Brandawareness ads are really the only kind of ads that really make sense in their current model.

With out much optimization a Facebook proxy site with 3 ad units can turn about $3 cpm. If Socical networks were even to use the ASL ( Age Sex and Location ) from your profile they could get to well over $3 cpm which is less than a blog site might make per 1000 page view, but would be an amazing sum on the kinds of traffic they are doing.

Facebook has 65 billion page views a month,  At $3 cpm that is $195 million in revenue a month. Or $2.3 billion a year.

Using hyper targeting, and performance trends based on what groups you are in, your location, and what ads performed well against your account in the past, Facebook could take this to well over the $12 CPM that I make on my website.

If Microsoft who provides the majority of the ads for Facebook could get Facebook to $10 CPM Facebook would be generating $8 billion a year.

There is gold in those hills, but until, and there are no shortage of advertisers, Facebook is turning down Ads on a regular basis, based on a overly strict community standard.  Not to mention you can buy ads at 10 cents CPM through their service?  I can’t do that through even the crappiest of ad networks.