Digital IQ and the Myth of Social Media

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July 29 (Bloomberg) -- L2 Thinktank Founder Scott Galloway discusses the effectiveness of a Facebook presence with Scarlet Fu on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Word turn the corner and tried how to profit.

Sales increased 53%. this is the big piece of the revenue type.

Do they deserve the praise they are not getting?

Just using the stock price as a barometer, this is not necessarily reflected on the $35 price.

You were fairly skeptical on facebook.

Why is that?

I am skeptical at these prices.

The valuation is just extraordinary.

They had a remarkable announcements that if you look at what would typically justify that.

There is this advertising like impression.

The cpm's are dropping.

It would justify what is a healthy valuation.

Is a very big cloud you are describing.

It is whether or not the valuation is super relative to where it is.

There are some really interesting stories.

If you look at advertising this is arguably the only company in the world that is not experiencing a negative arbitron was -- arbitrage.

This is extra near for a media company.

Google is incurring a negative arbitrage.

A lot of them look at hp.

Facebook has shown they have effectively become a mobile company.

They're probably the most ardent development company in the world right now, over a billion dollars.

Zero revenue from mobile just 12 months ago.

Now 41%. the facebook exchange responsible for or effect percent of the targeted clicks worldwide.

A lot of us think do i remember ads from facebook or mobile?

A lot designed the answer is no.

Just looking at the share price, it is at a high of may 2012. you have a couple of charts you brought with you including looking at prestige brand on facebook.

We have one who looks at the number of likes from burberry and dior.

A lot of friends are looking to modify.

The answer is "now what?" these communities have gotten so hermetic it has enabled the brand to facilitate interactive action.

They have not been able to monetize these communities.

It looks like burberry is taking more than this and reducing it.

Burberry has seen -- is seen as an iconic industry leader.

If you look at the chart, it is clear that even though there has been some away it is on a downtrend overall.

They spent drew mainly in the emerging markets.

Growth is faster in the emerging markets.

We look at the dollar value, where is it?

It is a bright spot for facebook.

The most engaged market by the community who likes shares or comments on that.

Aipac is now their largest community by region.

It is an extraordinarily strong board.

The other component is a lot of the traffic has not translated into actual sales.

Social commerce and asia looks like it might be a viable channel for commerce.

There are some social platforms or the track is converting to actual sales.

If facebook continues to innovate around this product development that has been extraordinary, you can see the social commerce sales probably come out of asia.

Do you see facebook allowed to operate in china anytime soon?

That is way above my pay grade.

It is so complex and so many behind the scenes moves.

Thank you so much.

Scott galloway.

This text has been automatically generated. It may not be 100% accurate.

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