Why Facebook bought Oculus

If you ask me, that is the real story here — realization that there is a glass ceiling to advertising especially as we shift gears and move away from the old desktop advertising ecosystem to a smaller, pocketable ecosystem that is less prone to cheap optimization tricks and is also limited by available attention…

I buy that argument, but Zuck said they don’t plan to make money from selling the Oculus hardware and would use it for advertising and virtual goods. If Facebook is looking for additional revenue streams, I’m not sure they found it.



  • Sigivald

    It’s baffling to imagine him saying that (not that I suggest he didn’t, it’s just baffling that anyone would actually say it).

    To get anyone to buy it such that they would ever see an ad or buy virtual goods, you have to have some reason for them to do so.

    Ads are something you might endure as a form of subsidy to get some other good you desire either at all or at a reduced price; they are not a good in themselves to their consumer*. Surely Zuckerman, of all people, understands that.

    As a diversification move, or a way to gain technical credibility, buying Oculus and keeping it primarily a gaming machine makes sense.

    Nothing Zuckerman has actually said about it, that I’ve come across, makes any sense.

    (Maybe he has some deep clever plan he’s not talking about. Or maybe he’s bought too much of his own BS and thinks “social” makes anything profitable.)

    “Selling virtual goods and ads” makes less than none as a primary motive.

    (* The only possible exceptions are irrelevant here; promo calendars that are more image-porn [be it mostly nude people or hot cars etc.] or things like Superbowl Ads that are entertainment products that also advertise.

    “Play this ad game in VR” is not going to sell a single Rift.)

  • http://www.mike-pulsifer.org/ WVMikeP

    I’ll bring a new dimension to poking your friend.

  • Moeskido

    It’s hard to keep the scorpion from stinging you before you’ve both made it across the river.

  • http://www.theuniversalsteve.com SSteve

    I don’t see us moving away from an advertising ecosystem. Advertising has been financing mass-consumed media since the earliest days of radio.

  • Bretton Morgan

    Ad revenue, the BANE of the modern world!

    Both pimps & tricks don’t give a sh!t how effective they are. “Just give us the fu$king money and shut the fu$king up!”