The last few weeks have not brought good news for Facebook. Just as the company introduced a widely-hyped yet underperforming IPO, the efficacy of Facebook's advertising model came into question when GM announced that it would pull its primary ad campaign because it was not bringing in results.
Despite these stumbles, the social-media giant still remains Number 1. How it navigates its way through these recent obstacles and whether it remains Number 1 in social media remains to be seen. Facebook, like all new media, is ever changing and will continue to evolve. Based on its trajectory, there are several predictions that analysts have made for its future.
Here are a few things that may be in store for the future of Facebook:
New Advertising Models
Facebook users freely share their personal data, helping Facebook and advertisers profile them for demographic information. In addition, Facebook is able to analyze the behaviors and preferences of its users based on their likes, their friends, their listed interests, and more.
Facebook is likely to find more sophisticated ways of mining these data to extrapolate on trends and to make predictions about behavior (particularly buying behavior). The information that Facebook gleans is likely to help them create new models for advertising that will help companies reach their true target audiences more efficiently and to increase conversions.
It is also likely that Facebook will find more ways to get everyday users involved in advertising, perhaps connecting advertisers with regular users who are willing to post about products or brands in exchange for payment or discounts.
Shopping Integration
Some analysts have speculated that the reason some advertisers may not be experiencing much success with their Facebook advertising campaigns is that they are not set up to make sales online.
Facebook may be able to expand its advertising model by integrating shopping into the user experience -- allowing users to shop directly through Facebook, perhaps even using a Facebook payment service. (Of course, GM may still not experience the success it hopes for on FB. It seems unlikely that anyone will think of a way to convince someone to buy a new car online sight unseen.)
Search Functionality
Keeping track of what a few hundred of your closest friends are doing can be difficult, even when they're all connected to your Facebook profile. A search function could help you easily find a post or picture that you were LOLing over earlier in the day but now can't find because you're scrolling through hundreds of posts about the celebrity who just died.
Many analysts have speculated that Facebook will not only introduce a search function for its site but also perhaps a search engine for the web, possibly even as a competitor to Google.
More Mobile Options
Facebook has been limited in its mobile options for users and advertisers. While there is a Facebook app, its functionality is limited, and the ability to advertise is almost non-existent. Facebook has said that it is developing more options for mobile connectivity, particularly for advertisers.
As more and more users are connecting to the Internet on smart phones, tablets, and other mobile devices, Facebook and every other company with an online presence will have to find ways to reach those users organically.
While it is impossible to know just what the future holds for Facebook or any other company, it is possible to make some predictions based on current trends. Most analysts agree that Facebook will adapt its advertising platform, possibly even adding shopping functionality, and will start exploring search and mobile options. With the fast pace of the changing tech landscape, it's certain that we won't have to wait long to find out what changes take place.
What do you think the future of Facebook holds? Share your thoughts in the comments!
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