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Facebooks Public Offering Coming

May 17, 2012   //   by freshtraffic   //   internet marketing  //  Comments Off

The largest news on the web as of late, has got to be the flurry of activity surrounding Facebook. And just in case you’ve been living under a rock for the last while, Facebooks IPO is about to break into the open.

The largest IPO being put forward in history, Facebook is about to offer itself up for just north of $100b (yes that’s a ‘B’) to the stock buying market. It’s a massive pool of cash that it wouldn’t be uncalled for if Zuckerberg would hop into a giant vault and swim around a bit ala Scrooge McDuck. The offering smashes the other tech giants in comparison, and obliterates Googles offering of just under $3b just a few years ago. A fair amount of hype has cropped up surrounding the number, along with the murmuring of Facebook possibly even taking out Google with their incoming influx of cash.

There is however, the other side of the equation, Google and Facebook aren’t in competing markets. Facebook, is the dominating social network online with nearly a billion accounts, and Google is the reigning king of search. Both players have dominated their respective markets, and have carved their own living out of paid advertising. And it’s the advertising angle, that some marketers believe where Facebook will be stealing money right out of Googles coffers.

Recently at SMX London, Amit Singhal opened the talks with some rather interesting information about Google, and about how they have no idea how it all works. That’s a rather broad statement actually, and there is some definition to be made. During the question period, someone asked Amit how much money Google makes on algorithm changes. Contrary to what the tinfoil hat wearing people believe, Singhal was adamant: “no revenue measurement is included in our evaluation of a rankings change.”

That might seem rather preposterous when you look at how their revenue model works, after all the search giant has made its seemingly limitless billions on search. Going on further, Singhal even opened up on the fact that no one knows exactly how everything works (all of unpaid search, AdWords, Android, etc.), he has a pretty good idea of how all of unpaid search works. Just some interesting food for thought, as the conspiracy theorists out there seem to think Google tweaks the algorithm when they want a cash injection.

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