Posts Tagged ‘value’

Facebook Value Plummets

Thursday, December 18th, 2008

The value of Facebook has plummeted over the past year from an estimated 15 Billion dollars to its current value of around 2 Billion dollars.  Although this may initially seem like the company is in financial trouble, it is not a true reflection of the changes that Facebook has undergone in the past year.  The real reason for this sharp drop is that the previous valuation for Facebook was considered to be hugely over inflated, and this new valuation more accurately reflects the company’s worth.

Despite the current economic climate, Facebook has had a very successful year in 2008. Its popularity continues to grow and it currently has over 100 million users. In fact, earlier this year, Nielsen Online ranked Facebook as the second most visited site in the UK (behind ebay), whilst Hitwise ranked it at number 3.  These numbers tend to vary due to the methods used to calculate website popularity, but there is no doubt that Facebook is becoming an increasingly popular website as each month passes.

In addition to being a fantastic social networking site, Facebook can be used as a great marketing tool, and it is this aspect that makes it such a great money earner.  Facebook ads are a great way to increase exposure to your company and are currently good value for money compared to many other advertising mediums. Applications on Facebook can be used by viral marketers, and individual companies can set up Facebook profiles or groups to help market events and products.

Although its values has dropped considerably in the past year, Facebook is going stronger than ever.  Since being bought by Google it has undergone many changes, which have contributed to its success.  It is likely that in 2009 it will further strengthen its position and its value will begin to increase.