According to Barron's recent report on August 20th,
2016, Facebook has the potential to grow 20% in their stock value just from
their ad growth. Facebook has 1.1 billion current users according to Wall
Street, but in four years this will grow to approximately 1.7 billion by
estimation. This gives companies an enormous platform to reach future
customers.
Facebook is still building its ads volume, they are
continuing to improve on how to place their ads in front of current and future
customers. They are able to do this because they have a lot of data that users
have to give them in order to sign up for an account. They can use this user
data to focus on specific individuals and use ads that will resonate with those
future customers. There are other ways they are searching to get ads in front
of consumers, including WhatsApp, Instagram, and Messenger. Facebook has not
even filled these avenues with advertisements, so there is much room to
increase ad exposure to users.
In this last year, we can see that Facebook has been doing
well with advertisements because their stock value has significantly grown and
has increased to $124. Per Barron's report, they expect Facebook stock
value to go up to $153 by the end of the year. This incredible growth is due to
the revenue that Facebook is bringing in from their advertisements. Facebook
has surpassed expectations by economic experts for growth in regards to their
stock. This incredible growth shows that they will continue to grow and expand
over this next year. This growth will be driven to more money making areas
including, but likely not limited to, ads. With this undeniable growth, there
is a great setup for building a better ad platform.
In the last several years, Facebook has been growing in the
area of mobile, social media. Mobile, social media increase made up 84% of the
advertisement revenue last quarter, which is up 63% over the last year. This
increase in revenue gives Facebook another advantage to grow in their ads.
When compared to other forms of social media, Facebook is in
a league of its own. It almost doubles the amount of viewers it has per day
compared to LinkedIn and Pinterest. This, once again, shows that Facebook has a
great opportunity to increase their ad growth and potential business growth for
those companies and individuals who would like to invest in stock.
Will all this said, this is an area businesses need to
consider when thinking of expanding their marketing strategies. Now, Facebook is
the next big thing in social media and investing. Before everyone jumps on the
bandwagon, your business should think about investing and using Facebook with
the leaders so your business will be set apart. Facebook ads will give your
business that extra edge and relevance every business is looking for.
Let me leave you with one closing thought. Facebook will
continue to grow and expand and is predicted to do so economically. They want
to continue to earn more revenue, and they will take their ad customers with
them. What is your next business move?
