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The head of the vast global marketing firm Havas thinks that investors just don’t get it with respect to Facebook.
Specifically, he thinks Facebook will be worth more than Google.
Because Facebook’s revenue opportunity is much bigger than “advertising.”
Here he is, Havas CEO David Jones, quoted in the British magazine Campaign:
“I personally think that Facebook will be more valuable than Google. All this stuff around Facebook and the IPO, [with doubts over ability to monetise] I personally don’t buy it all.
“Today, Google has a $200bn evaluation, no one questions that, but if you think about it, it is a pretty much one vertical that you search, and is based on intent signals.
“Facebook can play across multiple verticals and it can do it based upon identity signals. So I think the potential is enormous across so many broader and different areas, not just advertising.
“That said, clearly there’s a massive opportunity in the advertising space, it just has to be done in the right way.”
Jones’s comments should obviously be taken more seriously than those of the average Joe’s, given that he buys a lot of Facebook ads on behalf of Havas’s clients.
Of course, it’s worth pointing out that one of the Facebook sceptics Jones thinks doesn’t get it is Sir Martin Sorrell, the head of the massive global ad conglomerate WPP–who also buys a lot of Facebook ads.
Sorrell thinks Facebook ads are “invading the social space,” where people don’t want to be bothered with them. He also thinks we’re now coming up on “crunch time,” where all the advertisers who spent millions on Facebook over the last 18 months will need to justify this spending with results. And that day of reckoning, Sorrell thinks, may be painful for Facebook.
Havas’s Jones brushes off this concern, saying he’s seen excellent ROI’s from Facebook:
“What I’ve seen so far of the ROI work they have done is very compelling, it really is… I think they’re demonstrating not just the return on investment in social media and Facebook, but also demonstrating how it works in the more social the advertising is, how much more effective it is.”
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