Why does Facebook return to its IPO price? Mobile services Show Bright Eyes

Source: Internet
Author: User
Keywords Facebook facebook
Tencent technology June Ming August 1 comprehensive report July 31, Facebook opened 37.96 U.S. dollars, the day the highest 38.31 U.S. dollars. Facebook's share price fell from $38 to $17.55, taking less than four months, while returning from 17.55 dollars to 38 dollars took a full 11-month period. The 38 dollar, the IPO price of May 18, was the lowest since August 31, when it was set to hit a public offering. Facebook's shares rose 38.82% per cent in the last 5 trading days, largely thanks to a market response after the July 25 release of its second-quarter earnings. The biggest bright spot in the financial results is the description: Mobile advertising revenue accounted for the company's overall advertising revenue of 41%, compared to the last quarter growth of 11%, is the PC-side advertising revenue growth rate 4 times times. Investors are happy to see such a change. Because Facebook, a year ago, was embarrassed by the fact that mobile advertising was generating revenue in its prospectus, "not getting substantial revenue from mobile-end products" was tantamount to injecting a stimulant into the investment market compared to the quarterly description. How has Facebook reversed the situation this year? Facebook's positive attitude over the past year, Facebook has formed a team of senior engineers to address advertising issues. The company also encourages engineers to go out, communicate regularly with advertisers, and visit major account headquarters to find out what they want and how they will conduct marketing. On the big side, Facebook is trying to demonstrate its effectiveness as an advertising platform. For example, Facebook is now working with Datalogix, a data company. The company can track whether users watching the social networking site's ads end up buying. Vik Kathuria, Mediacom partner at WPP's advertising firm, Vick Caselia that Facebook's emphasis on measures helps advertisers get feedback on whether the ads they put on Facebook have increased sales. Some advertisers, however, have other concerns, particularly about possible advertising overload. The change in the attitude of advertisers the performance of the second quarter was better than expected, in part because of a strong push for mobile advertising, which meant that, through the initial run-in, advertisers were happier with Facebook and more willing to put their advertising budgets into Facebook. "Facebook offers improved services and is more attentive to advertisers than ever," said Adam Schratt Adam Shlachter, senior vice president of DigitasLBi, a Publicis Groupe advertising firm. A year ago, Facebook was a bit hard to deal with because they were growing too fast and the services they offered were unsustainable. "However, FacebookPart of the reason for the surge in mobile advertising in the second quarter is that Facebook is one of the few Internet outlets with a large number of users, and advertisers are growing in their current effort to put the budget into the mobile world. Both are hit. Rob Norman, chief digital officer of GroupM, the global advertising giant WPP's media company, said that no advertiser on earth would ignore the mobile strategy, while Facebook had the largest mobile advertising platform in the world, which had a scale effect. In addition, advertisers are particularly fond of Facebook's mobile side because of its ability to advertise on the news Feed. This advertising position is prominent, and full of color photos, it is difficult to be ignored by users. Still focus on the user experience Facebook will launch a video ad in the news this fall, according to sources. Advertisers and advertisers worry that the move will scare consumers away. However, the source also said that Facebook will reduce the number of video ads launched every day. "Facebook has to find a balance between user experience and making money," said Sean Corcoran, Mullen Digital Media senior vice president of the advertising agency Interpublic Group of Cos, America's second-largest advertising agency. In a Wednesday earnings call, Facebook CEO Mark Zuckerberg said the company would closely monitor consumer sentiment about advertising. "In some user experience surveys, we have not seen a sharp decline in satisfaction," Zuckerberg said. We will compare this result with the user survey results using the ad-free version of the dynamic message. "The Atlas search has finally borne fruit. Facebook's mobile and desktop advertising departments are the same department. It uses the same promotional activity, a complete set of keywords, and the same words. This can make consumers forget, so it is more effective for advertisers. More interestingly, this is very similar to what Google (Weibo) has been trying to do. Google has achieved varying degrees of success on this point. Facebook's Atlas search also helped. "When you focus on the user's search, you may wonder what they are interested in," says Crichner Saberamania Krishna Subramanian, chief marketing officer at Mobile advertising Velti. While local search has unlimited potential for Google, Facebook looks more interesting because Facebook will be the starting point for users to surf the Internet. "With Facebook's own audiences and more external data, this will make Facebook's mobile ad revenue more." For now, Facebook has already accounted for 70% of global mobile advertising revenue. Facebook is making positioning more immediate and focused.Dan Slagen, senior vice president of Social advertising service platform Nanigans, said, "We used to use the most optimized promotional activities on a weekly basis and then pay attention to it every day." Dan Sregen Today you can optimize your promotional activities every day and focus on this every hour. If it starts raining in Boston, then play Netflix's ad. ”
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.