Why facebook is againg offering billion for startup? Why the snapchat is refusing?

29

October

2013

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After acquiring Instagram Facebook is looking for a new acquisition. Now according to news Facebook wants to buy snapchat. Another billion dollar company? Snapchat refused acquisition offer because guys from snapchat thinks that their startup is worth more. 

Is it a bubble or will it potentially be successful deal for Facebook? According to rough estimate of some experts growing phoro app snapchat is worth 3,6 billion of dollar. This is crazy cause they don´t have any revenue yet. In general pictures and photos seems to be cool. Pinterest is with a new investment valued to almost 4 billion US dollars. Do u think that this is new technological bubble or not?  

In snapchat almost 350 million of photo messages are send. Is anybody using snapchat? I think nowaday messaging is leaning more and more towards sending pictures. This app is very sexy especially for younger users. Facebook had problems with retaining young users on their site. Facebook is not that cool for them anymore. From that perspective this deal would make sence for facebook. 

Facebook was trying to something similar to snapchat. It was called Poke. Poke was not successful.

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Instagram showed how the ads will look like there

28

October

2013

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We all know that new technological companies will face challenges how to monetize it´s users some day. Instagram is thinking some time about ads or in generall how to monetize users. 

The ads will be shown to american users first but it is not sure when. Guys from Instagram said that they don´t want to piss of their users and for that reason they will test ads and make it happen slowly.  

Instagram said that this ad or picture that you can see below will be shown to all american users in their feed

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The goal of this is they want users to have hand-on approach to ads and then measure how they will react. Instagram said that the new ads will be different then organic content. New ads will have sponsored statement there. 

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Homework 4: engaging customers and prosumers

25

September

2013

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Blogpost

In my homework, I focused on engaging customers. I wrote about why is it important to engage with your customers. I think that you always have to start with why. The business world is shifting so rapidly that we have troubles to keep up with the latest changes. Concept of engaging customers can help you to find and build a base of loyal fans and supporters. It starts with publishing relevant and interesting content. Content is the king. This is one the most important thing in engaging customers in my opinion. In the end there is correlation between engaged audience and sales.

 

I also focused on measuring engagement. On one example from Taco Bell it is shown that rather than measuring how many you have in total it is actually better to measure quality of the conversations. How many people replies, shared etc. Social media should not be just a channel for pushing content, but rather a channel to have a dialogue with your customers.

 

I also used examples from company I like and admire. It is called Zappos, they are really famous for their customer centric culture. They have really satisfied customer and are using everything possible to make their customers happy. There are several crazy stories about Zappos and their customer service. You can call their helpline and ask for instance where you can buy pizza in your city after 10 pm. They should answer you.  I forgot to say that Zappos is US e-commerce company, selling mainly shoes.

 

To sum up this, I believe that to have engaged customers is very important and you should invest in your customer care department. Initially it may seem like a waste of money but I think this investment if done properly will pay off. 

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Facebook spammers are making around $200m a year.

19

September

2013

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Spamming on facebook is maybe more lucrative than we thought. According to a research done by Italian researches facebook spammers are making around $200m a year. 

The business model behind facebook spamming is that you have a fan page and you are posting links to third party scam sites. The results of the study were presented in the guardian. The most interesting are the numbers concerning value of the links posted in the fan pages. If the post is published in the fan pages with 30k fans link is able to earn on average 13 dollars. In the fan page with 100k fans it is on average 58 dollars. To hide where the links are pointing, spammers are using the service bit.ly for shortening the links. 

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Spam facebook page has to be build at first. When they have sufficient number of fans they start to post links that are making them money. You can make money for instance by sending your fans to website with malware or by bringing traffic to websites with ads. The third option is to simply get paid by publishing the links. 

The value of the links are derived from the third option. That means researches were closely following the forum where you can buy or sell these links. 

Interesting thing about this is that google is also profiting from this strategy. Spammers are sending trafiic to websites with google ads. If the people click to those ads google is making money too. 

If you have any experieces with that or you are a facebook fan page owner please share you stories 🙂 

 

Michal 

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