Social media letters

Facebook shares fall by 6% as lock-up period ends

BBC News reports another share price drop in Facebook. Well this is not really a surprise is it? As mentioned before in previous blogs. It really looks like this stock is so over valued.

Why over valued?

Don’t get me wrong Facebook is great for certain things. It started out as a social tool and grew so quickly that there seems to be a demand to put a value on it and milk it for everything.

So why is it over valued? We think that most users will be using it as a social medium to contact with friends. Businesses can also use it to interact with it interested customers. however, the two main revenues are the apps and the ads.

We’re not experts, but…

As far as the apps go on Facebook the majority appear to be free, with some adding costs to buy extras. I’m am still to find someone who has bought facebook apps add-ons.

So the Ads. As an online marketing agency, we realise the importance of advertising online and the data that is held is superb for advertisers, however as the different channels go, this is not really a B2B market and only a b2c market.

What next?

Only time will tell, If people want to engage with business online they will probably search and like them their selves. Facebook has a great database and need to know how to use this better. Unlike Google where users are actually searching for a page, Facebook users want to chat rather than buy.

There is obviously a market for advertising but measured with the rest of the options. One further point is, give it 10 years will Face book still be with us? Google+ has great potential to steal a march over time. watch this space

We hope that this article is of use, feel free to forward it to whoever may find it useful.

Digital marketing agency Surrey

Please follow our updates in the cowshed by subscribing to our newsletter https://smartcowmarketing.com

Smart cow marketing Ltd – the smart approach to sales and marketing, a company registered in England and Wales with Registered Number 07903210 Telephone: 020 3137 1826 / Facsimile: 0871 900 6153.

Social media letters

Flotation of Facebook

So what’s our feelings around Flotation of Facebook on the stock market?

Smart  Cow Marketing Ltd is a sales and marketing company based in South London.

We believe in building strong trusted relationships between business and so would like to share some of our in-depth expertise and knowledge with you.  This Blog is about the recent flotation of Facebook on the stock market.

Adverts

For the first of all, we are no financial whiz kids and we also appreciate what a good product Facebook is.  However, Facebook is a social media tool and there are many people that we have talked to who have not looked at the advertisements placed on Facebook.  So how will Facebook make its money can repay its investors?  Well, we can see a couple of avenues: first of all is the game’s experience such as Farmville and secondly is to the increased the amount of advertising.

Impact on users

We have recently seen motions towards paid posts within Facebook which means if you want to pay for your messages to be displayed above the others then you can do so.  Now at the moment this is not in place but feel that it will be the way to go.

As with all these technologies that float on the stock market they need to realise their financial impact.  And so to repay their investors one of the easiest ways is through advertising income revenue.  And as we can’t see how successful the adverts from the side of the Facebook page are, we feel that they are going to be more intrusive ad placements within your daily stream.

Where do we go from here?

We, therefore, feel in turn that this will affect the overall Facebook experience, changing from a social tool to a promotional tool.
When this happens we can see a loss of appeal and Google moving to new platforms.  However, Facebook or he has such a grip on the market it will take a very strong to knock it off its perch.  But inevitably a new product will arrive one day.  In the meantime keep enjoying using Facebook and look out for more posts on our blog.

We hope that this article is of use, feel free to forward it to whoever may find it useful.

Digital marketing agency Surrey

Please follow our updates in the cowshed by subscribing to our newsletter https://smartcowmarketing.com

Smart cow marketing Ltd – the smart approach to sales and marketing, a company registered in England and Wales with Registered Number 07903210 Telephone: 020 3137 1826 / Facsimile: 0871 900 6153.

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