Bono and the Facebook IPO

[spursman17]

Well said South. People are becoming more aware of the option not to share on FB. I know I have and constantly look for changes that FB automatically make when they add a new feature (timeline).

Most people I know only share minimal information unless they are friends with you.

People will continue to become more aware of this especially with the security problems on the horizon with cyberspaced attacks that IT companies are warning about.

I also never have and never will 'like' or click an advert on FB due details being shared. I also keep away from these added apps on there that also share information.

 

[Mulletperm]

Most definitely

Personally, I've never clicked an advert on facebook, and don't plan to in the future.

I think Facebook's real strength lies in its ability to build and communicate brand information to huge numbers of consumers.

But I imagine big companies will soon wise up to the fact that the ROI is not there for real advertising.

General Motors announced just before the IPO that they would no longer buy advertising on Facebook. Other companies will follow suit.

Also, as people become a little bit more IT savvy, the effectiveness of marketing on Facebook will diminish.

e.g. If I click on a "like", you don't know my full name, age, sex, address, school, home town or phone number. I choose NOT to share ANY personal information like this.

As people wise up, what will companies really gain from knowing 500,000 anonymous people like Kit Kats?

Bingo.

 

[Yossarian]

They made $4 billion last year.

Which would be a pitiful sum given the current valuation, even if it was correct.

Murdoch flogged Myspace for $35M having paid $580M a few years before.

The same thing will happen to Facebook - it will be superceded by a hipper alternative.

 

[nayimfromthehalfwayline]

 

[Leeds Spur]

GM will be back. Arguing that the adverts don't work is like saying TV advertising doesn't work!! They mindlessly play adverts on tv and know it builds brand awareness and communicates to a wide audience. The thing with Facebook is you can have an advert there and know it is only hitting your target demographic. They don't need to click through as this isn't google. Google fits the 'instant demand' search function. Facebook is about communication with your target audience and building brand awareness, with a billion people on there.

 

[Leeds Spur]

Which would be a pitiful sum given the current valuation, even if it was correct.

Murdoch flogged Myspace for $35M having paid $580M a few years before.

The same thing will happen to Facebook - it will be superceded by a hipper alternative.

No it won't.

You reckon a billion people are going to build up another social network like Facebook?? They've NEVER advertised by the way, all word of mouth and organic. They only way they can fudge it up if if they charge for access and uploads. If they get greedy they could fudge it up. But in the world of big data they are kings. The data they hold is staggering. MySpace wasn't comparable to Facebook at all. It's like VHS and Betamax. There QA only room for one.

 

[Leeds Spur]

Bingo.

Please share your marketing experience and qualifications. I don't doubt the IPOD is monstrously overvalued. But Facebook is here to stay and they will beating billions, as try are now, in years to come.

 

[Leeds Spur]

Well said South. People are becoming more aware of the option not to share on FB. I know I have and constantly look for changes that FB automatically make when they add a new feature (timeline).

Most people I know only share minimal information unless they are friends with you.

People will continue to become more aware of this especially with the security problems on the horizon with cyberspaced attacks that IT companies are warning about.

I also never have and never will 'like' or click an advert on FB due details being shared. I also keep away from these added apps on there that also share information.

You keep telling us about you and extrapolating that onto the rest of the world!! You might know how to change the privacy and might be suspicious of their motives, but the vast majority aren't. That is the simple truth.

 

[spursman17]

You keep telling us about you and extrapolating that onto the rest of the world!! You might know how to change the privacy and might be suspicious of their motives, but the vast majority aren't. That is the simple truth.

I disagree. People are becoming more educated and sites like Facebook are set for more bad press, especially with cybercrime being one of the main predicted threats of the future.

People will catch on, especially with going public will more than likely push for more revenue through adverts/information sharing.

 

[johnola]

Questions need to be asked about this IPO before anyone invests in it. They don't need the money to develop the business, why on earth does a billionaire need another umpteen billion upfront? He hasn't got cash-flow problems has he?

He must have doubts, this is just screaming hit and run.

If any of my pension fund managers buy into this then I'll be sacking them asap.

 

[COYS]

I think I posted this elsewhere, but you guys are really forgetting and underestimating the power of social media:

[video=youtube;0eUeL3n7fDs]http://www.youtube.com/watch?v=0eUeL3n7fDs[/video]

 

[Leeds Spur]

Questions need to be asked about this IPO before anyone invests in it. They don't need the money to develop the business, why on earth does a billionaire need another umpteen billion upfront? He hasn't got cash-flow problems has he?

He must have doubts, this is just screaming hit and run.

Friday was a scam. Heads should roll at nasdaq for what happened.

If any of my pension fund managers buy into this then I'll be sacking them asap.

 

[Leeds Spur]

http://www.foxbusiness.com/industri...may-be-on-hook-for-facebook-trading-glitches/

 

[spasm]

Which would be a pitiful sum given the current valuation, even if it was correct.

Murdoch flogged Myspace for $35M having paid $580M a few years before.

The same thing will happen to Facebook - it will be superceded by a hipper alternative.

don't think that will happen...the cheers phenomenon is firmly entrenched...sometimes you wanna go where everybody knows your name. doubt there could be mass exodus. but what do i know.

 

[Mulletperm]

Leeds you seem to feel that because someone has an alternative opinion to yours that they have to provide evidence of experience/qualifications in the subject. This is a forum, a place for people to debate.

Grow up.

 

[Mulletperm]

Something that needs to be kept in mind is that more and more people access social media (and websites) via mobile. I know the website I manage has seen visits from Android/Iphone treble in the last 18 months.

The Facebook mobile app' currently has no ads, so if the current trend continues with people using PCs less, and mobile devices more that will have to change. This obviously brings up the question of will this tinkle people off, creating churn and lowering the value of the company?

My personal opinion Leeds (and it's an opinion...) is that it's a bubble that will burst horribly. Pretty much the same way as boo.com did back in 2000 (who I worked for). Ridiculous investment, followed by uncontrolled spending and resulting in a company that fell flat on its face. I'm sure Mark Zuckerberg is too smart to allow that to happen with him there, but who's to say he won't take the money and run?

 

[spursman17]

don't think that will happen...the cheers phenomenon is firmly entrenched...sometimes you wanna go where everybody knows your name. doubt there could be mass exodus. but what do i know.

I agree based upon on maybe the next few generations but it's hard to predict the longer term future. Anything can happen in such a fast paced industry.

We are making assumptions based only on user interest but other possible avenues can cause a decline on their customer base. Mark Z was adamant on the reliability of Facebook when he first started rolling out the idea of a social website. He knew that reliability and a high upkeep-time was the difference between attracting new clients and maintaining existing ones.

WhoÔÇÖs to say Facebook wonÔÇÖt be targeted vigorously in the future (a victim of its own success)? Would you continue using such a site if its service reliability was shattered week after week? A real possibility with the increased predicted threat of cybercrime and greater technical users.

How about maintaining your confidentiality and the prevention of your data/info being stolen? Would you be put off or at least keep a closer eye on your privacy settings if increased amounts of stories were to hit the headlines?

These are just a few examples how a reputation can be hit and make people think twice about using such sites as well as shatter the revenue stream based on advertising and information sharing.

I personally think FB will be around for a long time but I also reckon the fad of the whole idea will become less fashionable with people after time. I reckon its client base will keep growng but I also believe their client base will spend far less time actually on the site once they become aware of the amount of time they waste and how it's affecting real life relationships and become aware of the amount of information actually being shared.

Who knows what the future holds.

 

[Gilzeantoscore]

What is the drop out rate of facebook. Must say, I'm over it. I find that most of the content is just mindless, or out right annoying. Don't really care what 'friends' think of the latest spell of hot weather etc.

 

[Leeds Spur]

Leeds you seem to feel that because someone has an alternative opinion to yours that they have to provide evidence of experience/qualifications in the subject. This is a forum, a place for people to debate.

Grow up.

Of course.

People are stating opinions as fact though. I'm just saying I have a MA in Marketing and have alot of knowledge regarding Social Media specifically, i'd like to think that gives me some insight. Not a lot but some.

What the fudge is an opinion without backup? Just chatting inane gonads surely? I back my opinions up with sources, sorry if that offends you.

And regarding the grow up comment.......i'm a very big boy indeed, just ask your mum.

 

[Leeds Spur]

Something that needs to be kept in mind is that more and more people access social media (and websites) via mobile. I know the website I manage has seen visits from Android/Iphone treble in the last 18 months.

The Facebook mobile app' currently has no ads, so if the current trend continues with people using PCs less, and mobile devices more that will have to change. This obviously brings up the question of will this tinkle people off, creating churn and lowering the value of the company?

My personal opinion Leeds (and it's an opinion...) is that it's a bubble that will burst horribly. Pretty much the same way as boo.com did back in 2000 (who I worked for). Ridiculous investment, followed by uncontrolled spending and resulting in a company that fell flat on its face. I'm sure Mark Zuckerberg is too smart to allow that to happen with him there, but who's to say he won't take the money and run?

As i've said, it's the like button that is the cash cow. Not viewing ads for click-throughs like standard web media.

The monumental amout of data available already for demographic profiling and complimentary cross-selling is enough to make Facebook a sustainable business for many years to come.

With their cash pile they can now simply acquire any threats to their position, such as instagram.

The chat function tinkled all over Skype and that threat.

The games bring in nearly a billion dollars a year.

The ?ú115 billion valuation is gonads, probably worth a tenth of that.

But it will be a very big and profiatble business for many years to come, IN MY OPINION.