Facebook launched a video commercial to celebrate the fact that it now has over a billion users worldwide. Its marketing strategy can be considered as unusual, since the social media itself is an usual type of businesses.
Facebook hadn’t created video advertisements but the brand’s name and logo are visible everywhere on the Internet. Its target market is one of the widest possible since it is available worldwide; all the people who use the Internet can have access to it without any cost to register or any complicated process to complete.
It is interesting to see that although Facebook is such a popular media, its financial viability and profitability isn’t so secure. Facebook’s IPO and break into the financial markets wasn’t as successful as one could have expected, regarding its huge visibility and brand awareness.
Ads on social media websites are not considered potentially very profitable by the markets. Facebook, like the video games that we talked about in class n°8, is not a media in which people are receptive to ads, it is used for entertaining purposes only.
Therefore, one of Facebook’s challenges in the future will probably be to figure out how to use such a broad users database in order to make profits and attract investors.
[Source here]