Facebook’s share of views ahead of its market value

December 23, 2010 § Leave a comment

Much respect for Facebook, but when Wedbush analyst, Lou Kerner, assigns Facebook 20% of the value of the ad market (at a 16x multiple) just because it generates a quarter of all pageviews, he ignores the fact that Facebook’s CTR way underperforms display advertising on average, as well as paid search CTR. Facebook delivers reach, but hasn’t cracked the response nut yet. But give it time … its real value as a marketing platform may be in Fan Pages and applications, rather than display advertising.

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