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Facebook IPO, One Year Later: What Does The Future Hold For The Social Network?

May 18, 2013

redOrbit Staff & Wire Reports – Your Universe Online

One year after its forgettable entry into the stock market, Facebook´s shares have still not returned to the level of their IPO, but the social network has found success in other ways.

In fact, according to Juliette Garside of The Guardian, shares of the website were still trading 70 percent below their opening price of $38 as of Friday. However, in other ways, “the world’s largest social network has made seemingly unstoppable progress.”

Back in October, Facebook founder Mark Zuckerberg reported that the social media site had crossed the one billion monthly active user threshold, Garside said. Furthermore, according to research firm eMarketer, the business is set to make $6.6 billion in 2013 — an increase of $1.5 billion from last year, she added.

During the most recent quarter, Facebook´s net income rose seven percent to $219 million versus the same quarter 2012, and revenue jumped 38 percent to $1.46 billion, said AP Technology Writer Barbara Ortutay. In terms of users, she said the site now has 665 million individuals posting, sharing photos, and playing games each day.

“Much has changed at Facebook in a year,” Ortutay said. “The company’s executives and engineers have quietly addressed the very doubts that dogged the company for so long. Facebook began showing mobile advertisements for the first time last spring. It launched a search feature in January and unveiled a branded Facebook smartphone in April. The company also introduced ways for advertisers to gauge the effectiveness of their ads.”

The next step for Facebook, according to the AP, is to try and convince big businesses that advertising on a social network can be every bit as effective as running a television commercial. In order to achieve this goal, Zuckerberg´s firm has developed a new set of tools designed to help advertisers reach a more specific target audience than they can through TV or in print — connecting with consumers of certain ages and with certain interests.

“Analytic tools like these weren’t available a year ago,” Ortutay explained. “But last fall Facebook hired several companies that collect and analyze data related to people’s online and offline behavior. Facebook’s advertisers can now assess whether a Crest ad you saw on Facebook likely led you to buy of a tube of toothpaste in the drugstore. The services take what Facebook knows about you and what ads you saw and combine this with the information retailers have about you and what you’ve purchased through loyalty cards and the like.”

“What we can see conclusively a year after the IPO is that ads on Facebook really do help drive people into the store and help them make purchasing decisions, help influence their purchasing decisions,” added Sean Bruich, the website´s head of measurement platforms and standards.


Source: redOrbit Staff & Wire Reports - Your Universe Online



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