As one of the most anticipated public offerings in history, Facebook made its debut on Friday. The public interest was huge, but voices are already being heard warning consumers to be weary of the hype. With little tangible assets, Facebook’s net worth is to a large extent relying on the sales of advertisement on the social media site. However, just this week General Motors announced they are going to stop advertising on Facebook, since “it’s simply not working”. General Motors has spent around $40 million per year on maintaining a Facebook profile and around a quarter of that has gone into paid advertising. Losing such a high profile client the same week as the stock market launch has spurred on the critics in their lamentation.
It is now time for Facebook to show the world and its critics that it is here to stay. Some say Facebook could be a serious contender to Google. Although, in order to compete with the search engine giant, Facebook needs to become more than just a social media site. Facebook needs to become the new gateway to internet. It has the potential. Through adverts on the site, users are already able to discover new sites, products and offers. Through customers sharing information with each other, rating and commenting on products, sites and services Facebook has a potential to actually become the passage that Google is today. However, this was up for discussion already in 2010 (http://www.telegraph.co.uk/technology/facebook/8037491/Facebook-the-gateway-onto-the-internet.html) and we have still to see the full potential of the strategy. Maybe GM jumped ship too early, or they have possibly seen the future? It is up to Mr Zuckerberg and Facebook to prove them wrong.