By Greg Hazley

"The capital markets do not really understand social media, do not understand the translation of eyeballs to dollars, so as a result you're getting people with a shotgun approach," said MDC Partners CEO Miles Nadal today on CNBC.

Nidal discussed the increase in marketing spending on social media and the huge valuations that companies like Facebook and LinkedIn are attracting.

MDC is the parent to PR agencies like Allison & Partners and Kwittken and Company.