Nov 11, 2008 01:00 PM
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Tue Feb 9
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Facebook has made a bold bet on being the next Google. The problem is that it may have made the wrong bet. The Wall Street Journal has taken tardy notice of Facebook's "engagement ads," first launched in August. They are not an easy sell; they require advertisers to come up with some compelling "action" for Facebook users to take, which will then be shared with their friends, and thus spread virally through the social network. And yet the chief way Facebook hopes to sell these ads is through an automated sign-up process. Facebook has a direct-sales team, but its top management lacks experience in managing large sales teams. Which may explain why MySpace, which has built a large salesforce by recruiting heavily from Yahoo, has 15.9 percent of the display-ad market, while Facebook has a mere 1.1 percent. (Chart by WSJ/ComScore)
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