More, more, more. More money, more control, more rules. Facebook’s insatiable appetite for more may eventually leave it with none. For brands, this now means less exposure, less organic growth, less content ownership, and lower levels of engagement.
In a nutshell, Facebook is free because it’s an advertising platform. You, the user, are the product. What you do, talk about, like, and visit is all recorded and nicely packaged up for advertisers. These advertisers make up the collective engine that keeps Facebook running.
They’re so valuable to Facebook…or depending on how you look at it, you’re so valuable to Facebook, that they’re willing to make $19 billion acquisitions of messaging apps with a mere $300 million in annual revenue. A big number, but a smidgeon of the acquisition price. So why pay up? Because 450 million users, 70% of whom are daily users, provide a stupid, stoopid, stupendous amount of data, all of which, Facebook is banking on, advertisers want to get their hands on.
Or, another semi-popular theory, maybe when the President of your country knows you’re not “cool” anymore, it’s just appealing to invest in remaining relevant.
Probably more about the advertising dollars. Maybe a little bit of both. Need to remain cool to have advertisers. (more…)