Wednesday, May 16, 2012

The Facebook Ad Bomb: An Opinion On Facebook and the Advertising Formula

This week, Facebook is going public and its value is estimated at around $100 billion dollars. This would be the highest valuation for an initial public offering of a technical company. 

IS Facebook Worth 100 Billion Bucks ?

Facebook is an important part of the advertising business. Advertisers are spending lots of money to displays their businesses and I believe they are spending their money wisely because with so many people on Facebook, there is a wide possibility their clientele will grow. Although Facebook does a great job with advertising, it doesn't quite compare with television, and I don't think it will ever advertise as much as television. Television has a wider range of advertising than Facebook, and also more people watch television. This works out well for advertisers but I think the way Facebook generates the ads is kind of a violation of privacy to their users. On Facebook, they record your browsing history without your knowledge to come up with ads they think you might like. Some people may not like the idea of their browsing history being watched, I don't have a personal problem with it but i can see where people would find that inappropriate. If Facebook wants to use your browsing history to generate ads I believe they should notify you that your actions are being watched. Also, people find the ads are annoying and take up too much space on their timeline so i think their should be an option to display ads or not because if Facebook users really don't want to see the ads they can deactivate their profiles which decreases the chances of gaining customers for their advertisers, this defeats the purpose of the ads. Even with the money generated from their advertisers, I don't think Facebook is worth 100 billion dollars.

My Opinion On "Is Facebook Worth $100 Billion?"

I think that it is about time that Facebook become a publicly traded company in the stock markets. So the report talks about 1 in every 8 people being on Facebook and how they would need to get 1 of every 10 dollars made by ads in the world to be worth what they are predicting. I think that they might not be worth as much as $100 billion but they might make it close. While Facebook has only got $3 billion in ads since its creation, the television just in The United States has gotten $68 billion in ads. Facebook is using your friends, likes, age group, gender and more to specifically target certain ads to you. This can be a smart thing to do for them to get more ad holders so targeted people will buy their products. In the end I am not sure it Facebook is quite worth as much as they say, but I think they will do very well in the stock market.

My Opinion On "Is Facebook Worth $100 Billion?"

I think that Facebook should be a publicly traded company. I think that Facebook is worth $100 billion because everyone uses it and it's probably one of the most famous websites ever. I think that it's true that Facebook does a very good job of selling people products. Which is a big way of making money for them. By having so many addicting games and advertising products based on the information it has of your likes it knows what to advertise to you and it can entice you into buying things from them. In my opinion I think that Facebook will be worth even more in a couple of years.