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.
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.