Microsoft’s chief executive has seen the future - and the future. How Facebook Will Upend Advertising. By Jonathan L. Yarmis The guessing games over Facebook's worth are back on again. They were reignited by the news on May 26 that Facebook has accepted a $200 million investment that values the company at $10 billion. Much of the discussion centers on the ability, or lack thereof, of Facebook and other social networks to sell advertising and deliver advertising results. People get on Facebook to socialize, not hunt for products—or so the argument runs. But that argument misses the point. Almost a century ago, retailer John Wannamaker is reported to have said: "Half of all advertising works, I just don't know which half.
" The Holy Grail of ads: word of mouth The good news is that we're on the verge of a major rethinking of advertising's fundamental premises. Today that trade-off is being turned on its head. Credibility now has a channel for mass distribution. Obviously, we can use social networks to reach friends. Say I'm a chief information officer. Deploying social maps. How Functional Widgets Are Shaking Up the Web. Social Networking Is Hot, but Research Is Hotter.