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Silverback Social CEO Chris Dessi on the difficulties that the sector has faced in the market.
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-- shares falling to a new low just a few moments ago but you know -- also been several other recent Internet and social networking stocks.
That have been absolute disasters -- debuts joining us now is Chris -- he's the CEO of social -- social.
And Chris just so the audience those -- You're -- -- consulting firm to larger firms that want to be more attractive with their customers absolutely what we do is be essentially hold their hand and we escort them into you.
The social media ecosystem.
We help them understand how to engage appropriately with their consumer because it's different I mean.
The matter which we aggregate and disseminate information as a culture within social media.
Has definitively changed has definitively -- everyone has avoids these days and -- want to be heard these days.
But you -- to large companies like the Michael corners of the world.
But only to make money on it right I mean it's sort of like it could be a loss leader they just need a way to communicate and they're they're not try to make that something that -- The bottom line well.
At times it does and this is something that FaceBook is being held accountable foreign large businesses are understanding -- that there is a definitive our alliance social media because people expect.
A brand to have a FaceBook page they expect to get certain discounts and to have.
An insider's look behind the scenes about the company to have that type of relationship of the company that previously wasn't there before.
But Chris as a pure business model you know we -- at -- would look at Groupon now look at its book of all -- what that was supposed to be.
The IPO of the and our unrelenting I -- is look.
-- candidate candidate -- made by themselves as a business model.
Be monetized.
-- yet I believe so I think wait -- I think.
Right now Zuckerberg -- -- a little bit of a pickle I think he's got some cognitive distance happening -- right now because he wants to change the way that we all aggregate disseminate information as I said he's gotten there.
But now he's got all this information -- commodity is your information my information all the information that we provide to FaceBook and I think.
They're just scratching the surface on how to monetize that.
They're doing it with.
They're allowing the mood someone that would come -- -- -- you gotta admit though -- they got all -- information that but we're going to be pissed off -- they started selling it to other people they got to promise because it's free and we think it's secure right now they're take.
-- gentle hand trying to subtly do things like sponsored ads to sponsored ads for example with your whole foods and you and I are friends on FaceBook and you check in at whole foods.
I will sort of gingerly quietly see that pop up in the news -- saying.
O Charles -- checked in at whole foods isn't that exciting so it's a very symbolism possible an important aspect of advertising.
-- socket that 96 who wanted to logo that is a FaceBook is obviously like the Google social media analyst at I mean in my in my family interest -- something I -- anytime I -- -- it's an anniversary or birthday I think it comes up interest from my wife yeah absolutely and that's how we communicate through do you think all of the other.
Competition that's out there against FaceBook -- starting to hurt their valuation because the barriers to entry are very very low in terms of social media.
Perhaps -- more also seeing the sort of shift where if people would say FaceBook is the living room of social media and we're to the kids wanna hang out where to teenagers wanna hang out there wanna -- -- -- living -- right they wanna hang on the -- in the basement -- so we're seeing the emergence of other platforms like.
Tumblr and while kids will have -- -- have a profile on FaceBook they're not necessarily engaging in it as much as people would potentially want.
But I do you still feel bullish on FaceBook simply because of the fact they -- level this information.
And they're testing -- -- they're allowing for brands to pay for sponsored ads in new speeds outside of that ecosystem and it might have liked the -- written it before.
Outlets and by the way that they whoever Dutch auction guys we go down okay go ahead and 1950 OK you've got 95 did not -- had -- nineteenth.
-- -- -- Monica -- been so fascinating to watch all of these major social networking.
Companies.
Go this route because consumers are so used to getting content for free rights that it really struggling about how to monetize their web sites in and there at their.
Their home pages of the rest of -- -- what's fascinating at its media as a question is this is question did FaceBook go public too soon.
Without having a plan for really monetizing this thing I.
You know I don't think so I do think that they they're towing the line of turning people off because they're not being that ecosystem for free and if they see too much advertising that it becomes MySpace.
Prisoners is that Chris that's the I know your business' hot that's for sure passengers we'll -- about FaceBook obviously the stock as he -- speaking was dropping considerably so you have to convince the public just yet.
Who provided at the risk that.
