Facebook has decided to take a second swing at online classified ads. This time around they have opted to team up with Oodle to launch a classified section that combines selling with the more social aspects that Facebook's users have grown accustomed to. How Facebook will make money from them is still to be determined, however.
The decision to choose Oodle as the software platform appears to be a good one due the companies continued success with AOL and MySpace. But will Facebook be able to reap the same rewards? Online classifieds appears to many as a market with guaranteed success, but in a recent interview which I carried out with Oodle's CEO, Craig Donato, he was quick to inform me that "Online classifieds in social networking communities, as it turns out, is a harder nut to crack than many people would expect." But this time around Facebook can not afford to fail. In a recent interview with Rob Enderle, principal analyst for the Enderle Group, he told me that "Facebook really needs a revenue model that can support valuation." Without this revenue model Facebook is completely overvalued. So will this launch be a success? Let me know your opinions on the subject!
The decision to choose Oodle as the software platform appears to be a good one due the companies continued success with AOL and MySpace. But will Facebook be able to reap the same rewards? Online classifieds appears to many as a market with guaranteed success, but in a recent interview which I carried out with Oodle's CEO, Craig Donato, he was quick to inform me that "Online classifieds in social networking communities, as it turns out, is a harder nut to crack than many people would expect." But this time around Facebook can not afford to fail. In a recent interview with Rob Enderle, principal analyst for the Enderle Group, he told me that "Facebook really needs a revenue model that can support valuation." Without this revenue model Facebook is completely overvalued. So will this launch be a success? Let me know your opinions on the subject!
Posts
