In Monday’s post, I (half) apologized for my gloom and doom predictions about BlackBerry.
But today, I’m going to take a little credit for continuing to support Facebook, a company and a brand that many hate, but everyone uses and talks about. While BlackBerry was debuting its hot new Z10 phone last week, Mark Zuckerberg was making different news.
Consider what’s been happening at Facebook in just the past few weeks, and its implications for all of us.
They are figuring out mobile revenue. Remember when the IPO filing took place just a year ago? Facebook was lost when it came to generating ad dollars from mobile, despite massive usage of the company’s smartphone and tablet apps. In a short period of time, they’re turning it around. From essentially zero, mobile accounted for 14% of Facebook’s revenue in Q3, and rose to 23% last quarter. Those are unbelievable results for a company that was scratching its head 12 months ago. Consumers may end up hating those ads that appear in the News Feed, but they are racking up revenue quickly. And Facebook will keep test driving new concepts.
They are experimenting with ad formats. And we’re all the guinea pigs. “Gifts” lets users seamlessly buy stuff for friends. “Graph Search” allows customers to ask questions that help determine how your friends like and use other brands. And the list goes on. As Aaron Kessler, a Raymond James analyst, told the New York Times, “Not all of them will stick.” But Facebook is trying lots of different ad models.
They are investing in their product and hiring people. Of course, Wall Street hates the fact that while Facebook’s revenue was up substantially, so was its spending. Mark Zuckerberg explained that while the financial community may not like it, his company would continue to invest in people and new initiatives. And this is a company whose IPO was deemed to be disastrous. As Zuck reminded investors, “It’s important to start planting seeds.”
They aren’t afraid to fail. Facebook users don’t hesitate to whine whenever there’s yet another change foisted upon them when they log into the universe’s biggest social media gathering. But Team Facebook has been charged with the task of innovation, reinvention, and how to connect the dots with millions and millions of fans and brands to move more products and services. It can be frustrating as a user when changes “suddenly” occur, but Zuckerberg has a higher mission.
So some people will continue to hate on Facebook. But the reality of the social media’s monolith relationship with fans and brands that merely set up “like” pages is that it’s a free ride. And this cartoon sums up our real relationship with Facebook – whether we realize it or not:
And as we know, there are no free lunches – even in the world in the Internet.
Consumers often feel that because they’re a part of a community, they have a sense of ownership. After all, it’s your pictures, your memories, your friends. And broadcasters have become famous for always being in control of their messaging, their content, and their advertisements based on a scarcity of frequencies.
In the world of Facebook and other social media platforms where you pay nothing to join and participate, the payback is coming.
In fact, it’s already here.
Thanks to Tim Davis for sending me this great cartoon.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Love that cartoon! Perfect summation of pretty much the entire digital ecosystem…
Thanks, Jacquelyn, for the comment & for reading our blog.