"They can make the same revenue with 5 million regular viewers, each worth $40 to advertisers. Given Facebook’s admittedly somewhat ludicruous valuation ($300 / user), that seems a trifle."
That doesn't make any sense. Nobody thinks Facebook should be able to make $300/user. They're valued based on future growth potential.
Making $40 in ad revenue per user is pretty tough. If you assume $10 CPM, that's 4k impressions per, or 11 a day. Not impossible, but not trivial either, and totally unrelated to Facebook.
Fair enough, although it wasn't my intent to imply an apples to apples comparison. I admit that I don’t have a great sense of what reasonable numbers are here. Certainly, the type of site I propose ought to get far more attention from its users than your average internet site. Whether this translates into > $40 / year advertising revenue, I don't know.
That doesn't make any sense. Nobody thinks Facebook should be able to make $300/user. They're valued based on future growth potential.
Making $40 in ad revenue per user is pretty tough. If you assume $10 CPM, that's 4k impressions per, or 11 a day. Not impossible, but not trivial either, and totally unrelated to Facebook.