After Facebook’s IPO disaster, lots of questions have been raised concerning the company’s future. The biggest question, of course, is the issue of profitability. Although Facebook has brought in revenue, there are major concerns over its advertising strategy, especially in regards to mobile advertising.
One company, however, that has no doubts about Facebook’s monetization plan is Wildfire, the software suite for social media marketers. WebProNews spoke with Tom Rikert, the company’s Director of Product Development, who told us that Facebook is the centerpiece of most social strategies.
Furthermore, given its “treasure trove” of data, Rikert believes that Facebook is able to reach users with relevant ads based on their interests. Before Facebook, he worked at YouTube and was faced with the similar challenge of monetizing massive users through advertising. With his experience in this area, he believes Facebook is on the right track.
“When done right, ads are actually value add,” Rikert said. “They [Facebook] are connecting people to information they care about and entertainment they care about.”
As for the mobile advertising strategy, Rikert told us that he believes Facebook is approaching it correctly as well. He foresees the social giant eventually tailoring ads based on location and other factors that can be customized to individual users, which means higher click-through rates for advertisers and, of course, more revenue for Facebook.
What do you think? Are you convinced by Rikert’s defense of Facebook’s ad model, or are you still skeptical? Please share your thoughts.