Facebook’s $104bn bubble

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Mark Ritson’s column declaring Facebook’s stock market flotation share price to be inflated sparked much debate. Read the article here and read comment excerpts below:

Facebook may well have made a mistake by listing at this time – but only because people might believe your old world logic and that might hurt it in the short term. At just over $100 per subscriber, the valuation seems fair. Absurd of you to suggest its revenue model is restricted to advertising. That’s where WPP is more at home.
Tom Penney

I agree Facebook is over-valued – it should be more like $75bn – but your comparison with WPP is like comparing Facebook with MacDonalds. WPP is an ad agency, Facebook is not – it’s a media vehicle. If you want to compare Facebook accurately on the basis of potential advertising revenues, you need to compare it with the likes of Reed.
Ivor Morgan

Mark Ritson replies: I agree that Facebook is not valueless, just less value than moronic marketers would have us believe. I think Ivor’s estimate is still over the odds and $25bn is about right. Time will tell.


Loyalty tools at their best

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It’s not surprising consumers were found to be frustrated when loyalty programmes don’t use their data to tailor rewards (MWlinks.co.uk/BrandChange). However, there are many high street brands getting it right. Segmentation is crucial to any loyalty scheme’s success. But, for it to really hit home, brands must build their knowledge of the customer across every […]

Some valuable lessons to learn?

Webops Temp

It was great to read that those brands which have a purpose beyond profit have increased in value by 87% over five years, whereas those that are not ideals-driven have grown only 43%. Brands with ethical, as well as rational and emotional values, are winning customer hearts and minds. Also good to see that brands […]