Thursday, February 02, 2012

Impacts of the Facebook IPO

Tomorrow we'll get distracted by the jobs report for about 13 seconds before the financial media return to talking Facebook 24/7.

So, what will be the impacts of the Facebook IPO?

1) Facebook should get a nice little bump in advertising because of the increase publicity.  Many advertisers small and large may have avoided this platform because they were uncomfortable with the concept.  I expect a big increase in users around all of the IPO publicity and a correlating increase in advertisers.

A small note on Facebook's value proposition.  I read a review today of someone that ran an ad campaign with Facebook. They didn't spend huge money (probably $100) but it was their contention that only 1 out of every 10,000 people that saw their ad clicked on it and these were highly targeted ads served by zip codes.  He also contended that because most of the people that clicked through were only on the site for 1 - 2 seconds it seemed plausible that most of the Facebook click thrus were slips of the mouse.  It's food for thought.

2) The coming bubble in angel investing.  EVERY one of these new Facebook millionaire's or billionaires has 3/4ths of a foot out of the door.  The second they can get liquid many of these people will "retire" to their new jobs looking to fund the next Facebook, Twitter or Google.

Along those lines today I love this quote from a respected investor "Congrats to everyone on the Facebook IPO filing but really I find Facebook is an IQ reducer".

3) I'm not trying to be secretive but I think I have an idea that could revolutionize an industry and resurrect the US in one fell swoop.  Facebook Millionaires feel free to fund me at will :)


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