Facebook IPO: Was it a quick success or a slow failure? – Part 2

Advertisements on a social network is completely understandable and very consistent for the likes of LinkedIn and Facebook. However, that is the only ‘business’ that Facebook does to date other than charging third-party app developers like Zynga. Though advertisements on Facebook have been embraced by many marketers all over the world, but it is still in its nascent years.

Advertising on a social network is quite different from other portals. YouTube did it as banners, traditional and intuitive, and Google Ads on the videos, which was a marvellous way to generate profits.

Adverts on Facebook in the shape of banners are not liked by many users and it is not a very attractive way. It can be ignored by many and dislike by even more. Marketers are coming up with new way to advertise on the social network but that will take years at least to create profits in huge bulks for FB. Until that time, revenues in single figures might not be that satisfying to the investors.

Fortunately, Mark Zuckerberg has other plans in the bag. He and his fellow developers have a smartphone (rumoured) in the pipeline and there might be a tablet following closely. However, that is all what is still expected of the company. Will that see the light of day is, ironically, still in the dark.

The company is also planning to charge users for special membership, which will allow to spread notifications and statuses to all the fans and friends on the network. So far, only a fraction of notifications pop up in the News Feed that other can see.

It is a very intuitive plan for Zuckerberg and company but its has the potential of dislike as the main reason why people use Facebook is that it is FREE.

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Posted by Usman Khalid on May 26 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.