SOCIAL NOTWORKING

As a managing director for Morgan Stanley, Mary Meeker is the firm's global lead for the technology research unit. In 1995, she co-authored an industry report "The Internet Report" which would become a landmark during the internet boom era.

In her most recent presentation at the Web 2.0 Summit in San Francisco, "Ten Questions Internet Execs Should Ask & Answer" , you can find the chart that follows. It represents share of online display units along with corresponding CPM rates.

Click on the graph to enlarge

The report should be unnerving for the likes of Social Networks and especially Facebook. At the same Summit, Mark Zuckerberg brushed off advertising as "it's not necessarily about advertising".

Insanity?

It certainly isn't about advertising when faced with a dismal display rate. It also illustrates how weak the site is when it comes to ROI. With the exception of a few mega-efforts by major marketers (supported by even larger TV budgets), Facebook falls flat on its own face.

And it is becoming a potential detriment to sustaining business models supported by advertising.