Wednesday, February 15 2012
On February 1, Facebook filed for an initial public offering and expects to begin selling shares this spring. In 2011 Facebook had profits of $1 billion on sales of $3.7 billion. 85% of that revenue came from advertising and the rest from social gaming and other fees.
Facebook expects to raise at least 5 billion and hopes to raise as much as 10 billion when it begins selling stock in April or May. This is likely to be the biggest Internet or technology IPO ever.
For online marketers, the message is: social media must be embraced! Its impact is growing stronger every day. Facebook and other social media platforms will continue to be aggressive in finding ways to compete with search engines. In addition to having a presence on social media sites, many marketers are adding Facebook pay-per-click to their advertising plans.
From 2010 to 2011, the number of PPC ads delivered on Facebook grew 42% and the average price per ad grew 18%. Keep in mind that it's easy to make costly mistakes when you first venture into social media marketing. Call us if you want help with social media.