Much of the attention on Facebook’s initial public offering this week has been on whether the social networking giant is valued too highly. But whatever its current worth, Facebook has a potentially huge new source of revenue coming its way from “social advertising.” According to a new research paper I’ve just published, Facebook itself is only just beginning to realize the untapped potential of social advertising, in which marketers use online social relationships to improve ad targeting using data on Facebook users’ friend networks.
From Xconomy / Boston
It may be just a bumper sticker aphorism, but lately it’s got me thinking. Peter Thiel, early Facebook investor and Paypal cofounder, announced recently that he’s offering $100,000 to 24 young people to drop out of school and pursue an entrepreneurial idea in Silicon Valley. Thiel says the emphasis on having a degree has created “a bubble” in education, and he believes ideas can develop in a start-up environment much faster than on a university campus.
“We need more innovation,” he told the Financial Times recently. “There’s a tremendous cost to having the most talented people in society take on enormous debt, then take well-paying but dead-end jobs to service those loans for the next 15 to 20 years of their lives.”