Latest News About Facebook

Facebook’s acquisition of Instagram has immediately sparked fears of another dotcom bubble, turning a handful of bright entrepreneurs into overnight multi-millionaires but threatening to leave a wider pool of investors with their fingers badly burnt.

Kevin Systrom and Mike Krieger, the two young Stanford University graduates who developed the addictive photosharing app, will make around $400m and $100m respectively from the deal. Mr Systrom, who turned down a job offer from Facebook in 2004 in order to finish his studies, joked that the sale will enable him to afford a few more bottles of Champagne. With that sort of money he could buy the Champagne producer and a lot more besides.

Facebook has doubled the value put on Instagram just a week ago, when it closed a $50m funding round from investors including Sequoia Capital. Put another way, it has paid $80m per employee and more than $33 for every one of Instagram’s 30m users. It’s even valued the company ahead of The New York Times, which has a market capitalisation of $942m.

By sultanhaider

Facebook Vs Twitter

What’s the value of a social follower? And does a fan on one platform, and their actions therein, have more value than that of another?

It’s a contentious issue. Moreover, are fans acquired by a promotional campaign, such as Facebook cost per click (CPC), less valuable than those who are attracted organically?

Tapping into the latest research, Imbue Marketing have taken a closer look at the value of social following in this attractive infographic.

Key takeaways include:

  • 47 percent of customers are somewhat more likely to purchase from a brand that they follow or Like
  • 63 percent of companies say social media has increased the effectiveness of their marketing
  • A share on Facebook is the most highly-prized action in social media, with a value of $14, ahead of a Facebook Like ($8), Twitter tweet ($5) and Twitter follow ($2)
  • Moreover, Facebook fans are cheaper to recruit via a promotional campaign, with an average cost per Like (ALWAYS the key metric, as opposed to straight CPC) of $1.07
  • Meanwhile, a cost per follower on Twitter is a somewhat heady $2.50-4.00
By sultanhaider