Advertisement: The ace in Facebook’s sleeve gets out after IPO – Part 1

There are as many different opinions on Facebook’s initial public offering as there are people in the US stock market. However, the crowd can be segregated into two main parties, conservatives who think that the IPO will be an utter failure and those who think it is better to invest in the social network than even Apple, Inc., a company that is running a hot streak of late.

The difference in opinion is as widely bayed as is the mode of business that Facebook pursues. Instead of a traditional build-and-sell business model, the company dwells on a business that is free-of-cost for the masses to use. Apparently, the company brings much less in profits compared to its operations and adaptability by the people all over the world.

The social network spread like a virus in the 2007-09 era and the current culture of smartphones/tablets and wireless technology has dealt a huge helping hand in the company’s cause. More to the reason is the adaptability of the platform by the public all over the world. In just two years the user base increased from 800 million people to a hair less than the 900 million mark. And the trend seems to be unstoppable.

That is one of the major reasons its IPO has attracted such attention from every corner of the world, even China where the website is blocked. The irreplaceable nature of the network has been a major luring feature to the investors. Though the profits to the company do not come via a typical model, but its major source of income, advertisement, has earned it some $4 Billion in profits.

This very topic opens up the Pandora’s box on the operations of the company. Though advertisement on Facebook is not only the company’s strongest suit but the marketers who sell via the platform also see the huge difference.

Short URL: https://www.newspakistan.pk/?p=22502

Posted by Usman Khalid on May 16 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.