FT News Briefing Peak social media: The ads machine
Jul 15, 2023
Mark Zuckerberg's early decision to prioritize a vision over lucrative buyout offers changed the trajectory of Facebook. As social media's ad model evolves, questions arise about its sustainability. The push towards the metaverse showcases both ambition and the challenges of a saturated ad market. Declining engagement among younger users signals a transformation in social media dynamics, raising concerns about the platform's impact on youth. The podcast features insights from Silicon Valley veterans on these pressing topics.
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Zuckerberg's Billion-Dollar Dilemma
- Mark Zuckerberg, at 22, consulted Roger McNamee about a billion-dollar offer from Yahoo for Facebook.
- McNamee advised against selling, believing in Facebook's potential as a major social platform.
Facebook's Advertising Triumph
- Zuckerberg transformed Facebook into a global giant connecting 3 billion people.
- His key strategy involved leveraging advertising as a core revenue driver.
The Rise of Advertising
- Early internet businesses struggled to monetize, with subscriptions and micropayments failing.
- Advertising emerged as the dominant model, despite initial resistance.
