Well, with a $38 IPO price and now down to $27 at the time of this writing, a lot of people are starting to question and doubt Facebook.
What concerns me is that Facebook now a public company, is going to have to respond.
How are they going to increase their revenue and get the public backing them again?
My thinking is that many companies aren’t going to put their budgets in on Facebook Ads because of this fiasco and also due to the fact that major automotive companies have recently made public statements that Facebook Ads don’t work well for them.
How does this all effect us?
My thinking is that it could force Facebook to open up the door for marketers and others that are ready to spend money but Facebook has so many guidelines in place to stop them from doing so.
This is something that always drove me crazy about various online advertising sources.
I’ve run into many situations where I was advertising very legitimate things and the guidelines were so tight that I couldn’t even give them money to advertise a legitimate thing, that could not possibly negatively affect their business in any way to be on there.
I just find it funny that companies like Facebook to this day have limited their revenue so much by having these tight guidelines and pigeon holing themselves in a sense. Granted, the restrictions are not the only reason for limiting their revenue, they are making a lot of mistakes that companies like Google learned 8+ years ago.
I’m curious what Facebook’s next move will be, they have to make some big time changes to their Ad program as well as some new additions to their arsenal of tools available to regular Facebook users.
Great post, was going to make one exactly on this topic. I definitely agree that they’re going to have to open up their doors and not be as strict as they’ve gotten. With local advertisers being priced out and big corporations like GM saying no to Facebook, there has to be a change. Also, their future stock price will depend a lot on how they monetize mobile.
Very true. It will be really interesting to see how they respond. I wouldn’t at all be surprised to see them “open the flood gates” so to speak. Maybe I’m being dense here but people see affiliate related ads and landing pages everywhere else, does it really lower Facebook user experience that much to see rebills and what not without super obvious terms right in your face..