FaceBook UnFriends Its Fan Base -- CEO and Execs out on Spending Sprees while FB in crisis

[KurtNYC]

6. read a really good article about how the value of users keeps falling

the amount of revenue that can be charged per user falls as users have more and more options. A big problem for FB right now is smart phones and non-PC access to FB because you can't push ads through those devices as the screen is too small. FB has a very low engagement ratio in terms of clicks per view -- Google is 1 click per 50 exposures; FB is believed to be around 1 per thousand. But the underlying point was that ALL ad-based revenue for ALL internet media companies continues a long slow decline. He goes on to say that FaceBook could take down the entire ad-revenue based model by diluting the value of ad exposures to a level where no one can make money anymore.

Here it is if you're interested:
http://www.technologyreview.com/web/40437/

And one more thought on Krispy Kreme. When they did their IPO they got buy-in from their customers: the IPO succeeded in attracting small investors who like the donuts. Once they bought stock, they become marketers for Krispy Kreme recommending the donuts to friends and to the office manager. I think FB was hoping for something similar. It fits their idea that they can turn the whole world into an online Tupperware party.

I think the best positioned platform for mobile phone ads is YouTube, easily. Perfect fit.