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August 20th, 2012, 12:00 AM #1
SMS: Will Facebook?s IPO Change Anything For Marketers?
- Join Date
- September 6th, 2011
- West Chester, Ohio
Search Marketing Standard has just published the following:
Will Facebook?s IPO Change Anything For Marketers?
Well, it’s almost three months since Facebook officially became a publicly traded company with shares available for sale on the NASDAQ stock exchange. The social network raised what has been estimated to be around $16 billion, but despite the hot start on Wall Street, its value has declined rapidly ever since. In fact, just yesterday, Bloomberg estimated that Mark Zuckerberg has lost $600 million since the IPO, with Facebook stock now down 48% from its IPO price of $38.
Facebook will undoubtedly have to make some big changes now that it has gone public and given the disappointing stock price performance. While nothing significant has really changed for marketers as of yet, they may soon start feeling the effects. Some possibilities:
1.* More Ads
Going into the IPO, it became apparent that Facebook was desperate to justify its value and keep investors happy. In order to do this, it had to present a viable business model, and the model that has been producing the best for the company up to this point is advertising. Before even going public, Facebook introduced a number of new advertising products designed to attract brands and drive revenue. Now that making money is more important than ever, marketers can expect even more advertising tools to help them extend their reach and connect with their audience.
2.* More Competition
Plummeting stock value aside, Facebook’s IPO solidifies social networking as a market that is primed for big business. This could lead to it attracting more of the brands that have been looking for a legitimate reason to take the plunge, so to speak. With a plethora of advertising tools now available and even more in the queue, it wouldn’t be surprising to see more brands making a financial investment in the platform. Unfortunately, this could mean more competition and subsequently, less visibility for marketers using Facebook to drive engagement and traffic by organic means.
3.* New Tools
As you may have heard, Facebook recently purchased photo sharing service Instagram for a reported $1 billion. Acquistions such as this are likely to continue now that the company has gone public and needs to diversify its assets as much as possible. This could lead to good things on the marketing front if it implements that new technology with efficiency. Just imagine if the company acquired a hot piece of web property like Quora or better yet – Pinterest. Acquisitions such as these have the potential to enhance the platform’s functionality big time, and offer even more value for marketers. It will be interesting to see how Facebook approaches current and future acquisitions following the IPO.
Stability is Best
While change is almost certain at this point, the best thing for marketers would be Facebook maintaining some stability and making as few changes as possible. The company needs to appeal to the brands who are willing to invest their time and resources into the platform, so changes such as the timeline, for instance, which resulted in a dramatic shift, may be less likely to occur so fast. This stability would give marketers the opportunity to get settled in and make an impact without major disruptions.
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August 20th, 2012, 12:27 PM #2
August 20th, 2012, 04:17 PM #3
- Join Date
- August 15th, 2012
- Willowbrook IL. USA
I could be wrong, but it seems that as long as Facebook continues to expand it's over all functionality, that they will do well on wall-street in time. The effect that it will have on internet marketers seems to be positive, as functionality expansion can very well create new trails to blaze and even pave new lanes on existing market trails...
August 21st, 2012, 07:41 AM #4
- Join Date
- July 13th, 2007
Not a huge fan of using social media for business growth. This sentiment seems to also be reflected in the current stock price of FB and recent decisions by Fortune 100's to pull their advertising. Yes, social media is here to stay and deserves a sideways glance, but anything more will distract the affiliate marketer from more lucrative opportunities.
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