An initial public offering, or IPO, is the first sale of stock by a company to the public. Facebook is expecting to raise at least $16 billion through its IPO which will allow it to be considered the largest tech IPO ever. Currently, many Facebook brand pages and ads are turning to a third-party tool to see the insights of how their Facebook audience is responding. Facebook has changed fundamentally and has expectations for revenue growth to please shareholders, giving it a big responsibility to promote brands while keeping its users happy. Here are five ways Facebook’s IPO is affecting brands.
1)More and Better Ads
Being that Facebook now answers to shareholders, there is an expected growth in revenue that needs to be met. Advertising is the solution to keep investors happy and ensure the needed growth and marketers will be very pleased with the new innovations related to ad campaigns that will reach a broad target audience.
2) Less Organic Traction
With so much focus on ads, it will become increasingly difficult for brand managers to fuel organic growth. Valuable, engaging content will always be vital, but without content working hand-in-hand with Facebook advertising, your brand will have a hard time keeping up in the social space. The days of brands getting significant traction on Facebook organically are coming to an end.
3) Additional Ad Money
As a result of Facebook’s IPO, the opportunities to use social media to benefit brands are endless. C-level executives will now be investing much more money toward social media and marketing than ever before, giving brands a chance to have a positive edge against their competitors.
4) Diverse Buys
Facebook’s recent $1 billion spending spree on Instagram is the beginning of it’s marketing advancements. The ability to take control over more tech companies will increase opportunities to spread globally. This enables marketers to streamline social media marketing plans and receive more features by investing with Facebook.
5) Fewer Changes
Recently, Facebook has been consistently changing and adding features to it’s ground plan. From this, marketers have had a cautious approach when considering to join with Facebook. Now that Facebook is a public company, they will be more consistent with their platform, allowing marketers and brands to be assured not to worry about another dramatic shift like Timeline.
Engaging marketing content through Facebook is vital. Without content working with Facebook advertising, your brand will be unable to keep up in the social space. Advertising through Facebook is not just a financial investment anymore, it is a marketing investment to give your brand the edge that it needs to prosper.
