Although Facebook is the downfall of many a revising student, it still remains one of the most visited sites on the web. There would be many users deflated by Facebook either folding or being turned into a corporate machine, however there is a strong possibility of either of these possibilities becoming a reality.
Facebook’s rapid growth has to be accounted for in the resources available. It is that simple. Although most users see the social network platform as a free service, the fact is that massive amounts of revenue are required to keep it running, and currently there is not enough revenue coming in to maintain it.
There have been several bids to finance Facebook in the past, most recently at the beginning of this month, private equity firms offered funding that would take the value of the site to USD 4 billion, however the offer was turned down with Facebook CEO claiming that they do not need it. As an SEM professional it is easy to see why people would get the impression that Facebook needs the cash.
The platform spent years as an internal college networking platform, then as an inter university platform and finally release to the public in 2006. The site is built with usability not profits in mind. Currently the standard advertising space is going for a pittance and attracting a poor level of client; money making schemes and get thin quick programmes.
Some might say it was a brave decision to remain independent, as the investors will be looking for a return on that investment, meaning that the user experience will be compromised in the face of commercialism. However this was the reason that many shifted from Myspace to Facebook and the money men can expect to see a drop in the unique users if they turn the platform into a billboard.
Considering the recent facelift of Facebook, turning the updates into a real-time micro-blogging system, one might suggest that it is somewhat Twitter-esque. Twitter are demanding a huge increase in numbers, however once again the curse of profitability is looming in the not too distant future.
Twitter are beginning to integrate advertising into their platform and there are murmurs of a potential acquisition by none other than Google. With their focus on search and ads, God only knows what Google have in store for Twitter. Now at the mercy of shareholders Google has metamorphosised into a corporate entity and you could equate Twtitter to the early, innovative years of Google.
With access to constant stream of updating information Google could potentially apply search algorithms to information posted on the social media site, selling the information to advertisers. Questions are being asked on blogs across the net about the integrity of Google’s conduct in various areas of digitized data management, but one thing is clear – they are completely focussed on profit.
The evolution of social media platforms such as Facebook and Twitter is unprecedented and the privacy laws are sure to be tested. The more independent the platforms the more user focussed they will remain, however they are not registered charities and need to do more than just cover costs.
Hopefully is they do decide to go the way of Google, then another innovative social network solution will spring up that will learn from the lessons and integrate earlier a business model that compromises between usability and profit.
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