Wednesday, 21 July 2010


Facebook hits 500m users, and is racing towards 1bn users. Strange things will start to happen. A virtuous cycle is revolving around it. More users means more time spent, and more time spent on Facebook means more advertising inventory it can sell. Which in turn means more revenue. More revenue means more investment in r&d, which means it can hire more of the best people. And more of the best people means it creates a better product which attracts more users.

But above all of these is the fact that Facebook is building a more and more accurate database of our social likes and dislikes. This data coupled with smart algorithms for linking people to products will be worth very, very serious money.

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