After all the hoopla that surrounded the IPO it was fascinating to watch reality take hold. Will fb be able to monetize mobile traffic? Will they be able to retain the RIP employees? As the questions mounted, the stock started to tank.
In the meantime I've been watching as our client base has continued to invest in facebook advertising. Google has a well established reputation (and measured ROI) in our client's portfolio of promotion - and we have for some time been recommending facebook as well.
Because of our agency relationship with Facebook we are able to see the ebb and flow of advertising dollars from a unique vantage point and for me I'm seeing several reason to be optimistic about the future of fb advertising.
1. paying to promote posts is showing a healthy return on investment
2. paying to promote company pages is a great way to build fans - which in turn has value as a communication platform.
3. the concept of a facebook powered ad network (currently in the works) is a powerful one.
4. it appears as though facebook has begun to sort out the monetization of mobile traffic.
All these support an optimistic forecast for facebook revenue and stock appreciation. As I type this it has already surged by almost 4% today alone.
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