As you all know, I have been chatting a lot about social media, and now it seems that the conversation has taken an interesting turn, a turn that could equal $16 billion as Facebook goes public. There is a ton of press covering this IPO as everyone ponders how Facebook will make money. The issue is compounded with companies like GM stopping their paid advertising. Apparently, the free company page is working just fine thank-you-very-much.
The GM story is not the only example. Yesterday NPR posted a story about Pizza Delicious, a small pizzeria that only received $10 after a $240 investment in a Facebook ad campaign. Pizza Delicious’ advertising spend seems small, but you would think that the questions surrounding paid advertising would equal big issues for Facebook. It appears that is not the case as Facebook’s IPO could be the largest tech IPO in history. Now Pinterest has been valued at over a billion dollars. Are we heading for a social media bubble?
There is no doubt that social media has changed the way people interact and companies do business. However, I find myself agreeing with an article published in Forbes yesterday called “Warning: Stay Away From The Facebook IPO.” Mark Evans mentions many reasons to be wary; including the fact that 50% of users think Facebook is a fad. And many users are getting social media fatigue. Yahoo just posted that even with 900 million users, not everyone is using Facebook.
So I wanted to pose a few questions to our readers.
Now don’t get too excited that the days of Facebook updates are over. Social media will continue to be a part of our daily lives. It will just continue to change and evolve.
What are your thoughts?
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