How The Facebook IPO Will Destroy The World

 

Ladies and gentlemen, the world as you know it is about to change. No I’m not talking about the Mayan’s December 2012 prediction, and no I’m not talking about HBO canceling of one my favorite shows, “How to Make It In America”. What I’m talking about is Facebook’s most recent announcement that is sure to change how we all interact with the popular social media platform.

This past week the internet was all a buzz over Facebook’s $5 billion IPO filing. Yes you read that correctly $5 BILLION dollars. But for those of us who don’t work in Silicon Valley or on Wall Street, those three letters might sound as foreign to you as the rare Australian Bridled Nail-Tail Wallaby.

So let me break this down simply. The IPO we’ve all been hearing about stands for Initial Public Offering. It simply means that Facebook, formerly a private company, would like to become a publicly traded company on the stock market. So in essence they would like to open up the company for public investments to help raise capital for expansion or to help facilitate future acquisitions.

Primarily being a media buying agency, we’re forced to ask what does this mean for us? Simply put, it means that advertising on Facebook could change drastically. Getting an influx of cash would allow Facebook to expand on their existing advertising programs. In the IPO filed by Facebook on Wednesday they talked about expanding their experimental “Sponsored Stories” program to help boost ad sales. This allows companies to buy ads that would show up in a user’s newsfeed as opposed to the side of the page giving that ad an edge over the traditional ads. In the end this would be a great addition to any company offering social media services to their clients. While your personal Facebook experience will change, the result will help businesses run targeted ads that will stand out from the pack.

So you heard that right folks! Facebook, who has been at odds with consumers over the amount of advertising, has finally decided to breakdown and include ads in our News Feeds. While this is great for businesses looking to attract new customers through social media, I guarantee that Facebook will hear further push back from their customers. At this point it’s far too early to see the impact, but time will certainly tell. Godspeed Facebook!

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