Tag Archives: Social Web

Facebook Goes Public – Nine Things You Should Know About Facebook’s IPO

Facebook could be worth nearly $140 billion by today’s market close

The social network priced its shares at $38 apiece, valuing the company at $104 billion. The average first-day “pop” for a technology company is 32 percent; if Facebook follows that trend, it’ll be worth $137 billion by day’s end. But there’s little about Facebook that’s average, including its public offering. This is the technology’s biggest initial public offering and history’s second-biggest IPO, period, and it will raise about $16 billion. Statistics suggests that the first-day pop—if there is one—will be more modest than average.

A lot of the smart money is getting out

Early investors such as the venture capital firm Accel Partners are selling an unusually high number of shares.Nearly 60 percent of the stock sold today comes from insiders, compared to 37 percent for Google (GOOG) when it went public in 2004. Goldman Sachs (GS) is selling about half its stake, far more than the firm initially planned. “If you really thought that 12 months later the stock would be 50 percent higher, you wouldn’t leave that on the table,” Erik Gordon, a professor at the Ross School of Business at the University of Michigan, told Bloomberg News.

To justify its valuation, Facebook will need to annoy its users …

Thanks in large part to General Motors’s (GM)decision to de-friend Facebook, there are a lot of questions about the efficacy and future of Facebook’s ad-dominant revenue model. And it has high expectations to live up to: The $38 price gives Facebook a whopping 107 price-to-earnings ratio. (For comparison, Apple’s (AAPL) is around 13.) To dramatically boost ad revenues, the two best options are either to put more ads on the site—which would annoy users—or find more places to put ads. The latter means creating a network of ad inventory across the Web, much the way Google’s Doubleclick sells ads and places them on sites like that of the New York Times (NYT). This would give Facebook far greater reach, but could also give users the creeps. Imagine updating your Facebook status (“Really loving that new Carly Rae Jepsen song!”) and then seeing ads to buy the track Call Me Maybe at every site you visit.

… or do something besides advertising

Currently Facebook’s only source of non-ad revenue is its digital currency, Facebook Credits, which people use to buy virtual goods, such as tractors in FarmVille (ZNGA). During the first quarter of 2012, payments grew to make up almost 18 percent of Facebook’s revenue—close to $200 million in total. Overall, though, fewer than 2 percent of Facebook’s users have bought virtual goods with their payments option. There’s a lot of potential growth, in other words, along with hints that a big online operator such as Spotify may begin accepting Facebook Credits in the future.

Facebook has plenty of revenue options beyond payments and advertising

Facebook is a force: It accounts for 9 percent of all online visits in the U.S., according to Experian Hitwise, a company that measures website traffic. Hitwise also says that Americans spend an average of 20 minutes per Facebook visit. Worldwide, nearly 1 billion people have a Facebook profile. As investor Chris Dixon puts it, Facebook has real assets—including “a vast number of extremely engaged users, its social graph, Facebook Connect”—and should be able “to monetize through another business model,” apart from advertising. It could create the Social Smartphone, sell data analytics products, charge for higher-res photo and video storage, or perhaps hawk vintage Mark Zuckerberg hoodies.

There’s already a “Facebook Mafia”

Heard of the PayPal Mafia? Former executives from the online-payment provider have gone on to start big-time tech firms, such as LinkedIn (LNKD), Yammer, and Yelp (YELP). (And one member, Peter Thiel, cut the first big check for Facebook.) A Facebook Mafia has already emerged, and members have founded Asana, Path, andQuora. The Facebook Mafia is real, even though the name could use some work, says Dave Morin, Path’s chief executive officer, who previously developed Facebook’s development platform. “I guess we can’t escape from calling it that,” he says.

Facebook goes where Google won’t in photos

Facebook owns one of the largest photo repositories in the world, and its facial-recognition technology is getting a workout scanning them all, with more than 300 million photos uploaded per day. Facebook stores 60 billion images, a whopping 1.5 petabytes of data. For each uploaded photo, Facebook stores four images of different sizes. The site shows as many as 550,000 images per second. This is an area that has upset privacy critics and represents something that Facebook is willing to do that even Google isn’t: Google’s Eric Schmidt said last yearthat the company had built an app that would let people snap photos of others and identify who they are but decided not to release it, due to privacy concerns. Google and Facebook both have sophisticated facial-recognition technology, but Google requires users to opt into its photo-tagging service. Facebook users are included automatically.

Facebook’s new campus could be cursed

Late last year the social network moved into a 57-acre site in Menlo Park that was previously inhabited by Sun Microsystems. Sun’s fortunes soured shortly after the computer company took up residence there. The same thing has happened, in different times and places, to software-maker Borland, Silicon Graphics, and even Apple (which nearly went bankrupt three years after it moved into its current Cupertino, Calif., headquarters at 1 Infinite Loop). The good news: Companies that move into pre-existing campuses seem to fare better. Google, for instance, took up residence in SGI’s old digs.

Up north, Facebook is the only thing better than hockey

Facebook is one of the top two websites in every country except China. The social-networking site is most loved in Canada, where it wins 12 percent of all online visits.

Source: Businessweek.com

Leave a comment

Filed under Ad Campaign, Advertising, Applications, Branding, Business, Business Plan, Case Study, Celebrity, Consumer Psychology, Digital Creative, Digital Marketing, E-Commerce, Google, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Internet Technology, Management, Marketing, Marketing Mix, Marketing Strategy, Mobile Applications, Networking, New Product Marketing, Niche Business, Niche Market, Online Marketing, Online Product Marketing, Product Lifecycle, Product Placement, Promotion, Publicity, Search Engines, Social Marketing, Social Media Marketing, Target Market, Technology, Trends, Viral, Viral Campaign, Viral Video, Web Marketing, Website

Delivering Customer Expectations – The Secret to Sales Accomplishment

This article explores one of the major challenges of sales and marketing – delivering customer expectation is all the more vital in the era of the social web. Customers and prospects have access to a wealth of information which enable them to come to a decision.

The Hugging Used Car Salesman

When learning about the hugging used auto salesman, at the outset I thought it was just a ploy to be successful in vehicle sales during all the bad days that the used car or truck marketplace has recently faced. However on digesting furthermore he generates much more business compared with what the average used car sales organisation in their general vicinity. It actually is more than all the hugs, it is about building a superior quality of service, which features favorably with clients. This person treats any second hand autos he sells as though they are actually brand-new cars, including providing buyers with a full gas tank.

Their business attitude is just “You will bring in more money by taking good care of people than you’ll do by just going after the almighty dollar alone”. Its an ethos that is certainly about treating any particular purchaser, like a person and doing so with respect. Certainly one of the things that either global companies and consequently government organisations have definitely each been charged with failing to remember in their dealings with individuals – you may be handled as only a number.

Sales is all about the People Involved

In the long run though sales is very relevant to the people involved in the on-going business relationships. Developing the relationship with a customer which appreciates your own principles may well in the end grow into a whole strategy related to word-of-mouth referrals. It truly is people that reach purchasing decisions, even inside of any kind of business to business deals. Human beings come up with final choice with respect to the company that they work for. During any kind of trading alliance purchasers assume that their demands will be realized, or in the very least listened to.

Purchaser testimonials are actually critical, yet at the same point in time great new practical characteristics, along the lines of social networking, really are empowering clients by providing these people an outlet for their impression of your product. They have more the ways to access details about your business; they may contact some other customers; they will round up all of the beliefs of certain people, both bad and the good and leverage them in their own decision making. Working with opinions is critical, but as is staying interested in the extended on-line discussion could be simply even more most important, this can shows a successful value added solution and additionally functions forming trust.

Activity around people no longer starts and ends with the client visit. On-line activity is vitally important too. Google has given us access to so much information, yet the social web has opened access to people’s feelings and both are of equal importance.

Walk Inside of the Customer’s Shoes

Potential consumers demand to be satisfactorily served. In this case it is always crucial for you to always be very clear about what is delivered. Remember ultimately the client will judge based on their own reasons what exactly signifies a first-class customer service, rather than the dealer. Even our hugging second hand car dealer cannot meet the needs of all the customers all of the time, this is a practical lesson of salesmanship.

Sellers do never the less will need criticism to be able to learn what they do competently and those things they begin to really perform terribly on, nevertheless only a few purchasers feel at ease offering feedback; which can certainly be of concern. Some consider that they need answers to their explicit problems not just surveys online, or mind-numbing questionnaires, which can sometimes look like a complete waste of time and energy. It is far better to talk face-to-face, or maybe on the telephone than send out a survey.

At some point you ought to walk inside of the shoes of the very customer themselves. Picture all your marketing promotions initiatives through that customer’s viewpoint. Furthermore this is regarding a holistic package, and not simply one particular kind of marketing promotions – any concept used ought to be consistent with all brand communications.

Source: business.wikinut.com

Leave a comment

Filed under Business, Fashion, Fashion Industry, Fashion Marketing, Fashion Retailer, Management, Marketing, Marketing Mix, Marketing Strategy, Merchandising, Research