London, February 16, 2012: On February 1, 2012, Facebook announced that it had filed for an Initial Public Offering to take the company public. Valued between $80 and 100 billion and with over $1 billion in profits in 2010, the eight-year old company has dominated the social web across the world.
But Facebook still has a long way to go. More than $64 billion was spent on digital advertising in 2010, yet Facebook’s share was only 3%. In comparison to Google’s 46%, there is plenty of room for growth, particularly when with more than 845 million users, Facebook’s user growth has reached a saturation point in many markets.
How will the company maximize the value of every user and continue to grow its share in the digital advertising market?
Publicis Modem believes that the IPO will accelerate Facebook’s strategy to keep users ‘locked’ into the platform in every way possible. From the first Profile to the new Timeline and Open Graph applications, ensuring that users stay on the platform has always been a priority.
With the platform spreading to millions of websites and applications, Facebook will be able to create deeper data profiles of every user. These profiles can then be used to sell highly targeted advertisements and experiences to brands around the world.
How will Facebook’s IPO impact brands that are active within the platform? And why do brands need to rethink their social strategies in light of Facebook’s new product announcements?
Publicis Modem has outlined Facebook’s business, strategy and approach to become the social layer that underpins the entire web. By explaining the implications of Timeline and the Open Graph, we highlight how brands need to alter their strategies and experiences to connect with their consumers. Finally, we predict nine future products that Facebook could launch as a result of their desire to maximize value per user.