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Of Fox Business allure for you -- kids investors.
Banks on edge as we expect some time.
And the next 24 hours for FaceBook to file with the SEC to go public.
Still Facebook's rising tide lift all Internet boats horse for the rest of the web be running scared from this.
Who better to ask -- the institutional investors number one Internet analyst for the past four years.
Citi Investment Research is -- -- markets -- talk -- you thank you being on the show.
And share what do you thank do you think that this is going to be a big boat and a big boost for the sector overall in this thing finally goes.
Well let me -- -- a couple points one is that I think there's a bit of an overhang on some of the other display advertising names in part -- -- Impart that -- you know Yahoo! and impart that sale well because you've got an asset here that accounts for a very significant percentage of all display ad dollars.
And are coming in with effectively much lower add rate so if -- premium display advertiser.
On the -- and and eventually off the web.
And FaceBook train is a negative development for you.
Let me ask you this if you look at the average time spent on FaceBook.
It's about thirty -- we're talking 800 million users on FaceBook thirty minutes is an eternity.
In the world of the Internet.
Do you think that's kept the other guys scared because do you spend thirty minutes on Google -- spent thirty minutes -- -- -- -- -- mark.
Well as I I think if you think about it they.
It's pretty clear that that when the numbers come out FaceBook probably doesn't monetize those you does minutes as well as other sites do.
Give -- -- comparisons with traditional media I it's almost certainly that those FaceBook minutes or more engaged per user.
Then they are with with other media you don't to an awful.
FaceBook -- -- on under -- not.
But our other sites like a Google -- a very good job of effectively monetize seeing.
-- usage because you're on global looking for information in many cases really looking for ads -- rarely on FaceBook looking frat so there's this.
It's a it's a toss up.
Your stocking your friends which is the fun of FaceBook but at the same time.
It -- is going to be advertiser supported what is interesting in this is a great point you bring in up markets that Google in particular has other lines of businesses beneath that.
Or face but frankly it does not they're completely.
Advertising dependent on exactly what you're saying.
Your home page your your your your being your news feed.
Is that not a man they gonna have to come up with other revenue streams.
To frankly satisfy Wall Street has got tough on Mark Zuckerberg.
You know we -- that sounds exactly like the questions were asked about Google back in 2003 when it was labeled a one trick pony.
And -- fact that matter is Google's still largely a one trick pony it turns out that's a pretty big pony.
And it turns out that the all overall Internet advertising bucket is continue to migrate to -- -- essentially Google stole the last in -- for covering.
We'd argue over the last eight years a lot of -- in the US advertising revenue recovery is really got the one company.
The open question is over the as we come out of this in most recent recession over the next five years is a large part of that gonna go to FaceBook.
That's that's the probably the forty billion dollar question on the name.
I think the answer from Google's history is no you don't necessarily need to develop materially new revenue streams beyond advertising Google's doing very well thank you.
So FaceBook probably doesn't need to either but then again Google had out huge.
A market share advantage in its core market of search it's always maintained that.
An open question for FaceBook is will they be able to do that as well.
And Google+ you talk about the latest signed up Google+ 19 million new users -- -- again that's revenue that's where Google may be making a market FaceBook.
Can not I mean do you think that down the road the people are willing are gonna be willing to pay.
To use FaceBook is that in and the cards do you think.
I haven't heard of any I don't think there's been any public -- published reports about them.
Who gore FaceBook considering subscription -- material subscription models.
I think if -- you know again look at it from the global spur some schools perspective.
They never needed to generate a subscription.
Model in order to generate 304050 billion in annual revenue.
So I think there's clear evidence that a subscription model is -- necessary in order crate that.
And then -- just factually there other revenue streams that FaceBook has been this very trusting relationship with Zynga so.
Just to putting context -- probably a little bit more than just pure advertising revenue at FaceBook but the history also shows that Google can become -- -- did become a very large company.
Just with one revenue stream advertise.
-- its oil mark I was American and differences during a certain right now a good -- Republican -- -- -- and there's no way that -- -- trade that high.
And I was just as why does everybody else that -- but the thing IPO so it's gonna be exciting for FaceBook right.
Yeah I would think so I'll give you one last broad industry data point look at Internet advertising growth rates in 2011 on all -- seven Don actually accelerated.
And you've got two new -- coming -- mobile is becoming increasingly influential increasingly large percentage of our Internet usage.
There's advertising against that and we're starting -- -- TV ad budget starting to tip on line.
There's a lot of derivative plays -- that I think Google is one it's open question as to whether FaceBook is one to.
But that that ecosystem that FaceBook is in and Google was in and Yahoo! -- well.
Although there are marketshare shifts that ecosystem is pretty darn robust now -- sort of growth rates that you had pre recession four years ago.
That's pretty impressive there's -- lot of staying powered Internet advertising mark.
He -- -- -- gallon this thing gets close great to see you mark.
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