Facebook, everyone i know has an account there, nearly everyone i know plays some sort of games in there ( mafia war, avengers etc and i have been bombarded with game requests everyday!) This shows that the time spent on the website by their users should theoratically increase. ( Ok i admit, i spend at least an hour in there playing games, another hour stalking other people's profiles)
Facebook shares currently is being pummeled by investors for whatever reasons they can think of. Facebook is not growing fast enoug, facebook is not generating enough revenue from mobile ads and another few thousand reasons the sane mind can conjure up. And most of them have their own merits.
i for one beg to differ.
Facebook’s total revenue in 2011 was $3.7 billion, of which $3.1 billion came from ads. Meanwhile, more than half of its 845 million monthly active users accessed the social network through mobile apps or its mobile website, both of which sport no ads.
Lets take a look at this statement and the numbers linked to it.
3.7 billion USD. even if we assume that it makes only 10% profit margin, it will be making 370 million a year! Those are good numbers to be associated with.
Ok lets go through their strategy.
They still have a vast ocean of potential customers to tap. China, India and the far-flung countries in Africa. Ok lets take the worst case scenario in which they could not penetrate any of those countries. NO more growth in their customer base. So bloody what? They still have at least 845 million active users every month. and im sure not shifting to any other social sites such as Orkut as all my friends are in Facebook. and most of my data are in facebook. They have achieved the critical mass that does not allow for competitors to chip away their customer base.
Ads on their website. Granted, they suck. Most of them are telling you how to be a expert foreign currency trader within 48 hours. All you need to do is click on the ad that brings you to ijustscammedyou.com. It just does not give you the confidence to click on any of the links. But, if Facebook can utilize the one thing called "Like" and the "Groups" we join, they can systematically target us with the ads no? I liked Adidas facebook page. Well, it does not take a NASA genius to figure out that if an ad for Adidas comes out from their official page, i would click on it ( and hope it does not bring me to zalora, now dont get me started). Are they doing it currently? I hope so. Or else they should be fired.
Ads on mobile. Currently, nothing is on their mobile app that utilizes ads. And they cant really make money off the mobile users. They are currently working on a system to capitalize on the mobile advertising sphere but no official news is out yet. Im puzzled at their inability to do so. I really am. So mark, if you are reading this, i have one word for you, its called Groupon. Unless you tell me that Groupon's business model is trademarked, patented and what not, why on earth is Facebook not capitalizing on this model? Facebook has this feature called check-in ( Mr X has checked into Chilis Bar at KLCC, Malaysia). So Facebook ( assume that they have Chilis as their advertiser) sends an ad to Mr. X, telling him about this deal that if they come back next week they get 10% off their midwestern lamb chop. Or even better, Zara KLCC is having a sale, and since Mr. X is in Chilis, why don't Mr. X hop down to check them out? The potential is unlimited!
It is unwarranted that facebook is being pummeled. Their business is growing, it is difficult for their competitors to poach us away from facebook, unlimited ad potential from mobile.
My bet on Facebook. It will be a roaring success.
Facebook shares currently is being pummeled by investors for whatever reasons they can think of. Facebook is not growing fast enoug, facebook is not generating enough revenue from mobile ads and another few thousand reasons the sane mind can conjure up. And most of them have their own merits.
i for one beg to differ.
Facebook’s total revenue in 2011 was $3.7 billion, of which $3.1 billion came from ads. Meanwhile, more than half of its 845 million monthly active users accessed the social network through mobile apps or its mobile website, both of which sport no ads.
Lets take a look at this statement and the numbers linked to it.
3.7 billion USD. even if we assume that it makes only 10% profit margin, it will be making 370 million a year! Those are good numbers to be associated with.
Ok lets go through their strategy.
They still have a vast ocean of potential customers to tap. China, India and the far-flung countries in Africa. Ok lets take the worst case scenario in which they could not penetrate any of those countries. NO more growth in their customer base. So bloody what? They still have at least 845 million active users every month. and im sure not shifting to any other social sites such as Orkut as all my friends are in Facebook. and most of my data are in facebook. They have achieved the critical mass that does not allow for competitors to chip away their customer base.
Ads on their website. Granted, they suck. Most of them are telling you how to be a expert foreign currency trader within 48 hours. All you need to do is click on the ad that brings you to ijustscammedyou.com. It just does not give you the confidence to click on any of the links. But, if Facebook can utilize the one thing called "Like" and the "Groups" we join, they can systematically target us with the ads no? I liked Adidas facebook page. Well, it does not take a NASA genius to figure out that if an ad for Adidas comes out from their official page, i would click on it ( and hope it does not bring me to zalora, now dont get me started). Are they doing it currently? I hope so. Or else they should be fired.
Ads on mobile. Currently, nothing is on their mobile app that utilizes ads. And they cant really make money off the mobile users. They are currently working on a system to capitalize on the mobile advertising sphere but no official news is out yet. Im puzzled at their inability to do so. I really am. So mark, if you are reading this, i have one word for you, its called Groupon. Unless you tell me that Groupon's business model is trademarked, patented and what not, why on earth is Facebook not capitalizing on this model? Facebook has this feature called check-in ( Mr X has checked into Chilis Bar at KLCC, Malaysia). So Facebook ( assume that they have Chilis as their advertiser) sends an ad to Mr. X, telling him about this deal that if they come back next week they get 10% off their midwestern lamb chop. Or even better, Zara KLCC is having a sale, and since Mr. X is in Chilis, why don't Mr. X hop down to check them out? The potential is unlimited!
It is unwarranted that facebook is being pummeled. Their business is growing, it is difficult for their competitors to poach us away from facebook, unlimited ad potential from mobile.
My bet on Facebook. It will be a roaring success.
No comments:
Post a Comment