Facebook Inc (FB), Google Inc (GOOG): This Tech Company’s Advertising Model Is not Valuable

Facebook keeps saying that it things it can harness and monetize those connections, but the company continues to stumble in its attempts to do so. The best strategy for the company so far has been to take user data and try to sell it. This has been an increasingly problematic for Facebook since that’s not what users want. They don’t want their personal info sold off to some third party, and If that sort of action by Facebook were to become clear to its user base then I think that the company would have a serious problem on its hands.

Survival

It’s a delicate balance, but it might just be the only way that Facebook Inc (NASDAQ:FB) can survive. Now that Facebook has been a public company for over a year, investors want to see results. Facebook must try not to alienate its user base while trying to make money at the same time. It’s going to have to come up with something innovative and at least somewhat transparent to keep the revenue flowing, because its current ad strategy just does not appear to be overwhelmingly valuable as it currently stands.

The article This Tech Company’s Advertising Model Is not Valuable originally appeared on Fool.com and is written by Daniel Cawrey.

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