Changes On Facebook

Among other things, two items caught my attention this week:  Facebook made some changes to the way News Feeds function, and eMarketer predicted that Facebook's ad revenue will double this year from $1.86 Billion in 2010 to $3.8 Billion in 2011.  Unrelated information?  Perhaps, and perhaps not. 

All week long there were posts: 

"The Facebook Nazis are at it again!"  
"I hate the Facebook changes!!!" 
"It's time to move to Google+" (which I applaud)

In some ways, this reaction just sounds like a pack of Old Dogs refusing to learn a few New Tricks.  We have all come to embrace the concept that "people hate change" despite the fact that we rejoice in the pleasure of driving a newly purchased car, love to go on vacations and celebrate the birth of a grandchild. 

Embracing new things can be a simple matter of changing one's perspective.  This past spring, I was diagnosed with a gluten allergy.  I can't eat wheat, rye or barley - - no pizza or hot pretzels, and a laundry list of other products you wouldn't believe contain wheat.  Friends express sympathy, but my reaction is:  it isn't so bad.  Compare that to last year when my son was in heart failure prior to his heart transplant and avoided salt like arsenic and could drink one, maybe two, thimbles of liquid a day, or starving individuals around the globe who would beg for food to which they are allergic.  See?  It really is a matter of perspective. 

Back to Facebook

Why the changes in the Facebook News Feed?  I'm certainly not an expert, but let's remember that Facebook is a business, not a charity solely interested in offering a free service.  Some of the changes are genuine improvements for the end user, in part brought on by a response to Facebook's competition, Google's social media platform Google+.  

Controlling the way that people see and absorb information also impacts the effectiveness of businesses using Facebook, and can enhance the attractiveness of investing in paid advertising on Facebook.  Before I stopped checking the astronomical figures, Facebook's valuation as a company grew from $35 Billion in December of 2010 to $70 Billion this past spring.  Stagnating at a couple billion in ad revenue isn't going to help the value of the company to continue to grow, particularly with a viable competitor like Google+ roaming the social media terrain.

Facebook is rapidly moving toward an IPO, an initial public offering of their stock.  They're getting ready to cash in on all their hard work and effort.  Additional ad revenue, and the promise of future growth, will ad to their wealth.  Long after Facebook users cease complaining about changes in the News Feed, those selling their interest in Facebook will still be counting their money.  How long do you think it takes to count $70 Billion?   

The small business owner is keenly aware that there is much beyond his control.  Facebook, or any other social media, can and will make changes that adversely impact their small business.  More on how to deal with that reality in a future post.  Until then, do your best to figure out how to take the greatest advantage possible of the new changes on Facebook.

Thanks for sharing 187 seconds of your day,
Smitty