– John Gielow, Director of Digital Strategy
With all the frenzy surrounding the impending Facebook’s IPO, does this week’s quarterly earnings announcement sway your position? Facebook’s first quarter-to-quarter revenue declined for the first time in two years.
As most revenue comes from advertising, it’s critical to not watch the 900 million monthly users, but to watch the 58% (+/-) daily users. In our world of managing brands and determining how Facebook fits into the puzzle, we care most about the daily users who provide the best opportunity for brand engagement. As Facebook continues to tweak the user experience, building on the 58% daily users provides the real growth opportunity.
So, should you dip your feet in and participate in the IPO? My gut tells me to be cautious and take a look from the outside first. History tells us that hype doesn’t automatically translate into increased share value from the get-go. While you wait, don’t forget to check your Facebook status as we’re sure there will be plenty of IPO chatter postings.