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Thursday, September 6, 2012

Facebook holds potential to dwarf competitor

Facebook Inc (NASDAQ:FB) has all the tools and resources required to rule the internet economy in the future. Its massive monthly views numbers, coupled with its exemplary platform, represents an incredible potential to become the next internet king. However, a majority of people, including all stakeholders, continue to see only the negative side of the social networking giant, following the recent earnings results, and coupled with the overwhelming 50%+ decline in stock value since its listing at the NASDAQ stock exchange.

Nonetheless, Facebook has only itself to blame for the skeptical attention it now attracts from investors, as day by day, influential insiders continue to dump their stake in the company, as noted in one of our recent reports, where the co-founder sold 450,000 shares in three occasions, within a week.

Elaborately, Facebook Inc (NASDAQ:FB) has been trying to follow in the footsteps of Google Inc (NASDAQ:GOOG), in a bid to gain market share in the internet industry, albeit without success, all of this because it was doing the wrong thing. Replication is not the way to go for Facebook, but rather, innovation. Facebook holds within its means the ability to reinvent digital marketing, and become the most successful company in the business.

Unlike, Google, Facebook has access to almost all of its users’ information, if what the users talk about is anything to go by. Indeed, Facebook knows exactly what we have been up to, what we like and even our motives and sentiments; incredibly, the social networking company can largely rely on this information as it is provided voluntarily, and at no extra cost to the company.

Therefore, having this kind of information at its disposal, Facebook has the capacity of coming up with the most tempting advertising technique, that will prove almost a perfect conversion rate on all viewers. Facebook can easily design socially, and emotionally targeted advertising techniques by using the viewer information at its disposal, and further, study the viewer’s connections, in the form of family and friends, which increases the market segment.

Facebook’s platform, and technology is also well designed to support the type of digital marketing that will form the next paradigm of internet marketing. Additionally, Facebook Inc (NASDAQ:FB) knows almost all of our characters, as we bluntly keep on posting them by updating our status, and this means that not only does it know about us, it also knows us, thereby making it the one company that knows more about us than any other out there.

Furthermore, Facebook’s structure and access to information, gives it the kind of institution required to design customized adverts, as well as the ability to retain customers. This gives it the opportunity not only to get new customers, but also retain them, thereby building on customer loyalty. Customer retention is one of the biggest challenges facing businesses today, as markets remain dynamic with changing consumer tastes.

Facebook, which also is the most engaging platform, as featured in several of our reports, can count on its ability to keep viewers glued to its platforms, both mobile, and online, as a major tool towards making a lasting impression to customers. Its latest mobile platform ad campaign developments, which have started yielding returns, offer another springboard from the tattered image that dwells in the minds of many as we speak.

Nonetheless, Facebook still faces a big challenge, as it tries to recoup the losses in the skeptical mindsets within its stakeholders, and forge forward, putting aside the nightmares that could otherwise torment it for the next year or two.

At the time of this writing, Facebook Inc (NASDAQ:FB) stock was trading at $18.29 per share, up $0.56 per share, or 3.16% rise

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