Facebook Valuation Harvard Case Solution & Analysis

Facebook has made it possible to develop the earth in to the global village, because of the face that users from all parts of the world are joining Facebook. The members of Facebook represents almost all the cultures of the world. The feature of live games which the users can play online on Facebook, makes it more appealing to the young members. Apart from the young community, Facebook is equally popular in the aged citizens as well.

Facebook advertisement is critical for the business in maximizing the reach of customers, by the traditional marketing the reach to number of customers is limited. However, by the mean of Facebook marketing, businesses can advertise their products or services to maximum number of potential customers. Furthermore, due to the images and graphics it appeals more to potential customers to purchase the goods or services, which is also an important factor which maximize the sales of businesses.
Advertisement on Facebook also allows the businesses to better analyze their marketing campaign and effectiveness of advertisement. Traditional media fails to provide these benefits to the organization, Facebook can help companies to analyze their marketing effectiveness with the help of many analytical tools such as hoover effect.Which makes it possible for the company to evaluate, which advertisement is effective and on which advertisement the number of visits of users is minimum. The fact that modern Facebook advertisement is based on “Artificial Intelligence”, will also help organization to present their advertisement in front of the relevant customers.Which ultimately increase the effectiveness of Facebook advertisement and is the main factor, which makes the Facebook advertisement so successful.(Dawson, 2017)

Facebook Valuation Harvard Case Solution & Analysis

The success of Facebook advertisement is also primarily, due to the two way communications.In the traditional media only the message of advertiser is conveyed to the target customers. As opposed to this, in the Facebook advertisement not only the messages of advertisers are forwarded to the potential customers, also their advice was also taken by the advertisers.Which allows to better undertake the needs and wants of the customers. This two way communication is very critical in the modern economic environment, because of the increasing competition.If the organization doesn’t properly knows what their customer wants from them, it is highly likely that they cannot satisfy their valuable customers. Furthermore, Facebook advertisement also increases the loyalty of customers, as they feel more comfortable in doing business with companies who are keen to take their views in developing the strategies.Thus increasing the success of the Facebook advertisement.

Almost 75% of the users and members of Facebook are logged in by mobile phones, this increasing use of mobile phones had pushed Facebook to launch the mobile advertisement. The three main stages of the mobile phone advertisements are, Mobile sponsored stories highlights which brand or product the friends are liking along with the description of the brand. Page post ads, in this stage the option is given to the page of brand to turn the post of page into the advertise. Lastly, mobile apps install ads, allows the developers to enforce users to download the new application, rather than like the page or share the post..........................

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