The Facebook IPO is coming up and some analysts think the IPO could be bigger than the Netscape IPO before the dotCom Bubble of the late 90s. The company has been updating its ad units and other products before its big debut on the NASDAQ.
It’s hard to keep track of all the changes coming to Facebook while also filtering through the news stories relevant to brands moving forward, so here’s a round up of the biggest changes we’ve seen this year.
A Renewed Focus on Mobile
Facebook’s $1 billion purchase of mobile photo sharing app Instagram shows that the company is getting more serious about mobile. The company has also purchased the talent from companies like Glancee (a location-based social network) and Gowalla (an early Foursquare competitor) to round out its suite of mobile offering moving forward.
The impact of these purchase on the core Facebook product can already be seen. For example, Facebook has updated its mobile newsfeed to display photos more prominently, looking more like a great photo sharing app than just another mobile social network.
The company is also working on creating a highly curated app store. The new app discovery platform would showcase both desktop and mobile apps that rely on Facebook Connect.
Mobile will be increasingly important moving forward. Already apps like Instagram, Viddy, and social games like CityVille have shown that users are looking for new experiences to share with friends, whether it’s photo sharing, video sharing, or just playing a game on the go.
Community managers can also take comfort in Facebook’s new focus on mobile. New Zealand iPhone owners are reporting a new mobile Pages Manager app, so Facebook Page owners can manage their communities more effectively while on the go.
The impact of mobile has led to another big update to one of Facebook’s core products: Sponsored Stories.
Raising Awareness with Sponsored Stories
At the beginning of the year Facebook announced big updates to its ad units. More content can now be used in a sponsored story, making it possible for brands to have regular photo posts and status updates serve as long-term display creative.
The company also revealed that only around 16% of a brand’s Facebook page sees any given post. Facebook’s solution? Brands can now pay a premium to guarantee that up to 75% of their fans see a particular sponsored story.
Sponsored stories can also be featured directly in a fan’s newsfeed, overcoming a potential issue of “banner blindness” as user’s begin to ignore parts of the Facebook site that they know are just reserved for Facebook display ads.
As mobile becomes core to the Facebook experience, Sponsored Stories have gradually migrated to Facebook Mobile in 2012 as well. The premium placement of these units in a Newsfeed, especially on mobile, will make Facebook an effective baseline platform for engaging with mobile users on one of the world’s most popular apps.
So why is GM pulling $10 million out of Facebook ads?
With news of the Facebook IPO dominating business news this week, one story that’s gotten a lot of attention is General Motors’ announcement that they would be withdrawing their $10 million in Facebook ad spending. However, the company still plans to allocate upwards of $20 million toward maintaining their profiles and creating Facebook apps.
Is GM’s move wise? Ford and Nissan have both publicly criticized GM’s announcement, touting the benefits of increased brand awareness and long-term loyalty building as central to the Facebook experience for brands.
GM claims that they can’t “sell cars on Facebook,” but its competitors attest to the fact that the purchase process for the auto category is long and is driven by online research and recommendations from friends. By raising visibility within Facebook through sponsored stories and other paid advertising strategies, car companies can equip brand ambassadors with the information they need to make better recommendations to their friends currently shopping for cars.
Moving Forward
Facebook’s IPO is putting a lot of pressure on the company to prove the value of its ads to marketers. By renewing its focus on mobile, the company is positioning itself to get ahead of the curve on mobile advertising as consumer media habits shift to smartphones.
By revamping its Sponsored Stories product, Facebook is turning the newsfeed into a media channel that brands can buy against and more effectively monetize than they have in the past. 2012 is fast becoming a year that is proving Facebook’s power to drive referrals, and its importance will only grow as product discovery apps like Pinterest and new social shopping sites like Fab.com are built on top of Facebook.
GM’s pulling out of Facebook may end up being a dramatic move that ultimately backfires. With Facebook focusing on improving ad performance and demonstrating the ROI of Facebook marketing, GM may end up losing more share of voice to competitors like Ford who are more focused on social media for driving awareness and engagement than only closing the sale.
Simeon Spearman, 05.17.2012
Tracking Facebook Changes Leading Up to the IPO | Moxie Pulse.
