AgVoice | Beyond The Facebook IPO

Plenty has been said, written, tweeted about the recent Facebook IPO. About whether the valuation of the company is right. The financial ratios. The enormous billions that Mark Zuckerberg is now worth. How the stock opened on day 1. Whether it’s opening was in line with expectations.  In line with other high profile IPOs. What the future holds for Facebook’s financial well-being. 
 
As enough has been said by everyone from financial gurus to summer interns, I will not add to this discussion. Besides, I am a marketer, not a financial analyst. I will instead look beyond the Facebook IPO – and through a marketer’s lens:
 
What stands out for me is the reality of Facebook and the resultant opportunity of this for brands.
 
First the reality:
 
Without doubt, Facebook is the heart of the global social networking ecosystem. With member numbers nudging a billion, and fast growth from outside of America, Facebook is where more and more people come together. To share and talk about what’s happening in their lives.
 
Brands haven’t really been blind to the Facebook opportunity. What started as planting a ‘flag’ on Facebook by creating a brand page has today morphed into a far more comprehensive approach. Facebook is intrinsic to the Social Media strategy of most brands, and in the case of several, central to the overall Digital strategy as well. Today, it is not uncommon for brands to think of using Facebook as a Digital ‘home’ rather than a conventional website. 
 
Facebook too has been cued in to the opportunity brands saw on Facebook. The evolution of the Facebook advertising ecosystem is testimony to this. What started out as a free space today is no longer entirely free for brands. Yes, it is still free to create a presence. But to reach and engage a brand’s fans costs money.  The $1 billion dollar revenues of Facebook is largely made up of advertising moneys spent by advertisers to win in the reach and engagement race.
 
Now the opportunity: 
 
The days ahead will present opportunities –  for Facebook’s users, for brands on Facebook and for Facebook itself.  
 
With almost anyone you know or want to know seemingly on Facebook, it’s going to stay the first port of call for users. It’s also likely to get stickier with more and more people making Facebook their Digital ‘home’. And the repository of everything that happens in their lives. News. Views. Photographs. Videos. And of course, it’s where all their friends are.
 
Facebook is tuned into this reality. It will probably invest in enhancing its Social offering. To make its users stickier to its platform. And will no doubt be looking for ways to grow its revenues. 
 
The question that’s been floating around for a while now: Will Facebook stay free for users? Or will Facebook introduce a Premium service that will limit how much users can do for free. They well may do so, as it would add an invaluable revenue stream to their kitty. 
 
Brands too will get busier trying to wow and woo these large numbers of Facebook users. Clutter and brand noise will rise. People will get overwhelmed by the social surround sound (noise?) Brands will try and work harder to reach and influence their fans. Better content. Better ideas. More meaningful ways of connecting with their audiences will evolve. 
 
No doubt, Facebook is alive to the potential this can have. For its advertising revenues. With some brands questioning the efficacy of Facebook advertising and looking for more ‘engagement’ opportunities, Facebook may well offer these. At a price. That builds stickier advertising relationships.  And newer, bigger revenue streams. 
 
Make no mistake, as a public company, Facebook will find itself under closer scrutiny. By shareholders and potential investors. 
 
To use the billions it has garnered through the IPO. To turn what will soon be its ‘Social Billion’ into billions. Of dollars of revenues. For itself. And for its shareholders. 
 
So that it stays the biggest Social ecosystem on the planet. And also becomes the most valuable. 
 
Stay tuned to what the future holds for Facebook. And all of us. The IPO is just the beginning… | By Ashok Lalla, Author & Curator of 'The Future of Digital for Brands', a global online community spanning 38 countries
 
About the writer:
 
Ashok is an award-winning Digital, Brand and Social Media Marketing leader with over 18years of agency and client business experience on leading global and Indian brands that cut across the spectrum from one-cent candies to million dollar hotel stays. Ashok has translated his passion for Digital and Brands into authoring and curating ‘The Future of Digital for Brands’, which has fast grown into a highly regarded online global community (https://linkd.in/qfXBrj) of over 2700 Digital, Marketing and Brand experts and enthusiasts from 38 countries.
You can connect with Ashok on Twitter (@ashoklalla)..
 
Disclaimer: The opinions expressed in this article are those of the author, and do not reflect in any way of Adgully.

 

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