As a follow-up to my eHarbor Blog entry on Facebook’s growing pains, I would like to talk about Facebook recently receiving $200 million. I read about it in a CNN article, entitled “Facebook scores $200 million.”
Facebook has certainly not had any trouble getting new subscribers during this recession. In April, it surpassed 200 million users, an amazing number considering the company started just four years ago.
However, Facebook has had a bit of trouble obtaining investment capital since the start of the recession. That’s understandable, since investors and consumers are trying to be extra careful about where they spend their money.
I found it particularly interesting that the article mentioned Facebook’s overall value fell from roughly $15 billion in October 2007 to about $10 billion in May 2009. That drop coincides with my blog entry “Marketers cut social media presence when they need it most.” As times get tough, companies cut back on things they consider to be nonessential, and social-media sites like Facebook and Twitter are being neglected a bit.
Social media is an important part of marketing strategies now that so many of our potential and current customers are using those services. It’s a great way to stay in contact with them. Facebook’s growth and success could affect the way we market products and services in the future so it is wise to be a part of it. Just remember that social media is not search engine optimization, and both should be used to effectively reach customers.
The Russian company that invested $200 million in Facebook said they think Facebook could become one of the largest Internet companies in the world some day. Seventy percent of their users are already outside the United States, so they’re on their way.
The photo of the pile of dollar bills is from Flickr, and it is the copyright of mmarchin.
Tags: article, CNN, company, Ecommerce, eHarbor, facebook, future, marketing, news, positive, Social Media
Facebook’s $200 million boost a win for social media…
Facebook recently received $200 million from a Russian investment company. Facebook has had a bit of trouble obtaining investment capital since the start of the recession. Facebook’s overall value fell from roughly $15 billion in October 2007 to about …
[...] Facebook faces a delicate balancing act trying to please both customers and investors. Its investors include heavyweights like Microsoft, Accel Partners, and the Russian company Digital Sky Technologies. You can read more about the Russian investment in Facebook in my eHarbor Blog entry, “Facebook’s $200 million boost a win for social media.” [...]