Wednesday, February 15, 2012

Where is Facebook Heading? What the Experts Are Saying

If you happen to be one of the lucky workers who started out at Facebook and were paid in company stock then congratulations! You are about to become a multimillionaire. That's because Facebook is going public. With the initial IPO, estimates are that Facebook could pull in a whopping $5 billion when the company stocks are put up for sale later this year. This is a business move that has many tongues wagging over the prospect of what lies ahead for Facebook and online marketing. Considering that Facebook currently has over 845 million registered users it's no wonder that they are thought to be the social media giant that is here to stay.

The Value of Facebook

As part of the IPO, Facebook had to open up the books and reveal exactly what has been going on "behind the curtain." What the financial records have shown is that of vast array of businesses, both large and small, are pouring increasing amounts of advertising money into Facebook to promote their goods and services. These advertisements can be targeted to specific demographics allowing for a more direct return on investment in terms of pay per click advertising.

Jos White, who is the cofounder of Notion Capital, recently discussed with Forbes online the value of Facebook as it heads into the future. “Valuation is all based on future growth and potential. The bulls will tell you that they will do more than $8 billion this year and continue 100% growth for some years to come, which is phenomenal for company of this size,” he commented. “The argument is that Facebook will be the advertising platform of the 21st century because of the size of its user base, the level of engagement and also the far reaching nature of the platform across its website and applications.”

The Reach of Facebook

Not only was the announcement of Facebook's IPO good for that company and its shareholders but it also provided a boost to the various other social networking sites and their stocks. This would indicate that when it comes to online marketing tapping into a social media network is crucial for many companies.

CEO and cofounder of Somo, Nick Hynes, also commented to Forbes online about Facebook's market potential. “Facebook has market dominance; it has reach, velocity and gorilla status. It seems to be unstoppable in terms of user acquisition,” Hynes said in the interview. "While country-specific social networks have been enduring in some areas, Facebook has overtaken market leaders in Poland, Germany and the Netherlands, to name just a few, and will soon be the most widely used network in Brazil."

Next Up For Facebook

Beyond the appeal of connecting with family and long-lost friends, Facebook also allows its users to engage in many online activities such as games and surveys. The games have been adapted to be played as part of the community. This is taking social networking and online marketing to an entirely new level as it introduces online gaming too many users who probably would never even consider these types of activities. This is how Facebook is creating an ever expanding universe of online social outreach and powerful online marketing programs.

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