The Future Of Facebook

Facebook is a social networking service launched in 2004. Since September, Facebook has over one billion active users. That’s nearly 14% of the worlds population!!

Most of us have a love/hate relationship with Facebook. We love spying on long-lost loves, communicating with friends and viewing/sharing photos. But most of us get annoyed at political rants and silly statuses (“I had a sandwich for lunch!”).

Cliff Lampe, assistant professor of information at the University of Michigan’s School of Information, says those who abandon Facebook are doing so as the result of a single, uncomfortable event like a difficult interaction with an ex. A smaller segment of the population is discontinuing membership as a result of privacy concerns.

Facebook went public just three months ago with an initial share price of $38. Less than two months later, it’s trading for $18.75. Why is Facebook in a slump? It has been suggested  that reasons include poor investor relations, lack of revenue, and expiring lockups. It has been argued that perhaps CEO Mark Zuckerberg, who built Facebook from the ground up, isn’t up to the task of managing a large company.

Mark Zuckerberg announced in September that the social network is staking its future on mobile devices, but admitted that he bet on the wrong technology to get there.

Over the next few months, expect to see a lot of the cool stuff people have been working on,” Zuckerberg said. “We’ve transitioned, and are now a mobile company.”

Questions about how Facebook will make money from its mobile users, especially through unproven advertising programs, helped torpedo the most anticipated initial public stock offering in tech history.

Facebook went wrong two years ago by building mobile apps that can run on many types of devices, instead of writing code for specific operating systems.

“That is one of the biggest mistakes, if not the biggest, strategic mistake we’ve made, but we’re coming out of it now,” Zuckerberg said.

There has been talks of Facebook being the next Google, but Zuckerberg stated “if you want to be the next Google, you’ve got to have more than 30 percent growth.”

2012 has been an eventful year for Facebook on all fronts. From the introduction of Timeline for Brands to its push towards mobile advertising, Facebook will have to innovate, improve and adjust its strategy to stay ahead of the pack.

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