Monday, February 23

Facebook making $1bn

Marc Andreessen talks to Techcrunch about his new fund today and, as a board member of Facebook, say's Facebook is striving to find a new marketing model and platform, rather than take $$'s today through display and ppc. It seems that they are foregoing revenue to force themselves to innovate:

Marc Andreessen:
There’s a lot of confusion out there. Facebook is deliberately not taking a lot of the kind of normal brand advertising that a lot of Web sites will take. So you go to — a company like Yahoo which is another fantastic business and they’ve got these you know banner ads and brand ads all over the place, Facebook has made a strategic decision to not take a lot of that business in favor of building its own sort of more organic business model and it’s still in the process of doing that and if they crack the code on that which I think that we will, then I think it will be very successful and will be very large. The fallback position is to just take normal advertising. And if Facebook just turned on the spigot for normal advertising today, it’d be doing over a billion dollars in revenue. So it’s much more a matter of long term strategy.

Read the full interview and watch the video here.


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