Facebook – Will it make a profit and return to shareholders?

September 1, 2012

Not with it’s current business practice it won’t.

I’ve been using a bit of Facebook advertising. And I’ve noticed some strange goings on.

In using an ad to promote my website directly I noticed that the number of clicks reported and paid for from Facebook was always about 20% more than the number of clicks (in the form of visits) actually recorded by google analytics on my website. Always. Without fail. Phantom clicks?

So I deleted that campaign.

Now I’m using Facebook to advertise may page and increase my “likes”. And I’m noticing some other strange behaviour.

The CPM rate keeps increasing, something which Facebook automates and which I have no control over. Every day it creeps up a little further. It started out at less than 0.20 cents, now it’s up to 0.35 cents. When I began this campaign I calculated I would need about USD 200.00 to reach my goal of 1,000 likes. Now that cost has doubled with the creeping rate I am being charged.

When I had a problem with an ad on my Facebook campaign I tried to contact Facebook using their “help” menu. Ha! Trying to contact an actual real person is difficult. And when I did get a message to Facebook I received a dumb reply from someone who clearly had not looked at the problem and identified a solution. I solved it myself eventually.

I suspect that Facebook hires people from the same place that Paypal does, and has the same training process in how to not listen and simply cover your ass as Paypal does.

If Facebook engages in dodgy practices (possibly they’re using bots to record phantom clicks and increase their revenue) and makes it hard for their paying customers to contact them to resolve issues and bugs, then businesses are not likely to stay and give money to Facebook.

They’re doing it wrong.

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