What Facebook is really worried about

As you probably know, Facebook has filed for its IPO. With that filing, a lot of new information about the company was revealed. Among the noteworthy tidbits of information: 845 million monthly active users, 483 million daily active users, and over 425 million monthly active users using Facebook’s mobile products. Interestingly enough, Facebook appears to consider growth in mobile use among the key risks to the company. I’m not sure this is the biggest risk, but it’s quite interesting that Facebook considers it to be one.

What do you think the number one thing is that could lead to Facebook’s downfall? Can anything kill it? Tell us what you think.

In its filing, Facebook lists “some” of the risks that could significantly harm its business. It doesn’t say, “We could become the next MySpace,” but here are the things it does list:
If we fail to retain existing users or add new users, or if our users decrease their level of engagement with Facebook, our revenue, financial results, and business may be significantly harmed;

We generate a substantial majority of our revenue from advertising. The loss of advertisers, or reduction in spending by advertisers with facebook, could seriously harm our business;

Growth in use of facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers may negatively affect our revenue and financial results;
Facebook user growth and engagement on mobile devices depend upon effective operation with mobile operating systems, networks, and standards that we do not control. ;

We may not be successful in our efforts to grow and further monetize the facebook Platform;
Our business is highly competitive, and competition presents an ongoing threat to the success of our business;

Improper access or disclosure of our users’ information could harm our reputation and adversely affect our business;

Our business is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy, data protection, and other matters. May of these laws and regulation are subject to change and uncertain interpretation, and could harm our business;

Our CEO has control over key decision making as a result of his control of a majority of our voting stock;
The loss of Mark Zuckerberg, Sheryl K. Sandberg, or other key personnel could harm our business;

We anticipate that we will expand substantial funds in connection with tax withholding and remittance obligations related to the initial settlement of our restricted stock units (RSUs) approximately six months following our initial public offering;

The market price of our Class A common stock may be volatile or may decline, and you may not be able to resell your shares at or above the initial public offering price; and
Substantial blocks of our total outstanding shares may be sold into the market as “lock-up” periods end, as further described in “Shares Eligible for Future Sale.” If there are substantial sales of shares of our common stock, the price of our Class A common stock could decline.

You can view the filing in its entirety, as well as a letter from Mark Zuckerberg here.

I don’t think more people using Facebook’s mobile products will be the downfall of the company. People are increasingly using their phones (and tablets) to access the web. Increased mobile Facebook use should grow along with that. Facebook isn’t currently monetizing this use (with ads), but that is likely to change soon. Mobile ads are expected in the near future. That solves that problem.

Facebook’s mobile experience(s) are often criticized, and there’s no question that the desktop experience is better, but Facebook will continue to work on improving the mobile experience. The fact that they consider mobile such a risk factor only shows that this will be a significant emphasis. Expect more mobile-related acquisitions from the company, and better Facebook apps across mobile platforms.

I think the very first risk factor listed is really the one they should be most worried about. And essentially, this equates to “We could become the next MySpace.” The biggest challenge they have is to keep users interested, and other listed risk factors are an extension of this.

For one, don’t get shown up by competitors like Twitter and Google. Google, obviously a major force on the Internet should worry Facebook. It’s easy to brush off Google+ because maybe not many of your friends are using it. But how many of your friends use Google? That counts, because as Google has shown time and time again, everything they do is only going to become more integrated, and in the end, it’s really about where advertisers are spending their money.

Facebook has a healthy lead in display ads, but overall online advertising is another story, though Facebook is expected to surpass Microsoft and Yahoo this year. Google on the other hand doesn’t even have ads on Google+ yet. How long do you think that will last? Google is already showing a great deal of promise in the deals space as well (Google Offers), an area where Facebook hasn’t done incredibly well.

Beyond current competitors like Google and Twitter, however, there’s always the threat of the next big thing that comes out of nowhere. There is only so much time in the day. Every minute someone spends time on another site or another social network is a minute they’re not spending on Facebook.

About the Author:
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow WebProNews on Facebook or Twitter.

Twitter: @CCrum237 | StumbleUpon: Crum |
Google: +Chris Crum

Are you concerned?

The new Facebook Timeline is not the most popular feature that Facebook has ever introduced. Granted, it’s well documented that Facebook users are often super-resistant to change, but for some the new Timeline goes beyond minor annoyances like crowded layouts and superfluous features. For many users, it’s a real issue of privacy.

For awhile now, users have been able to access the new profile look if they chose to do so. But since it was still voluntary, many users just ignored it and went about their normal, everyday Facebooking. Facebook has always said that the Timeline would eventually become a mandatory part of everyone’s Facebook experience, but it wasn’t until last week that Facebook announced the switch to Timeline was imminent.

Will the mandatory switch to the Timeline cause you to reevaluate your participation in the network? Are you upset that Facebook is putting it on users to clean up their Timeline data, or do you think users should be responsible for everything the post – even stuff from half a decade ago? Let us know what you think.

Over the next couple of weeks, the Timeline will be rolling out to everyone. Once your profile switches over, you’ll have a week-long “grace period.” During this week, your Timeline view will only be able to be seen by you – this gives you time to clean it up and make it presentable for mass consumption.

Personally, I kind of like the Timeline. I think that it’s a much-needed upgrade of a fairly stale profile page. But then again, I’m not that private of a person and I don’t really care about the skeletons from 2005 that the timeline allow people to dig up if they so choose.

Having said that, here’s some news for Facebook users that have yet to switch to Timeline: it is quite overwhelming at first. I joined Facebook on Halloween, 2004 – and since then have amassed a shocking number of wall posts, status updates, photos, and shared links. And while I wouldn’t call any of it embarrassing, there are some things that if they went away, it wouldn’t bother me. A drunken photo here, an over-zealous political status update there – eight years of living publicly through Facebook is bound to reveal minor indiscretions.

But I know that I’m abnormal in the fact that I don’t really care about all of that. For a large percentage of Facebook users, the company is crossing some lines with Timeline. The main concern is that Facebook seems to have adopted an “opt-out” strategy when it comes to information sharing. The Timeline puts everything out there by default, and it’s the user’s job to clean it up and make sure that they aren’t publicly sharing something that they want to remain private.

Of course, this discussion of “private information” doesn’t just include old, unearthed photos and statuses – but the series of “frictionless” apps that are going to be an integral part of the Timeline. These apps, like “social readers” and music apps like Spotify automatically share your activities with friends. Although Facebook has stressed that the Timeline doesn’t disclose any more private information than the old profile and that all of the apps are voluntary, online privacy groups have voiced concerns.

One, for example, is the Electronic Privacy Information Center. They have asked the FTC to look into whether or not the Timeline violates Facebook’s privacy promises, stemming from a previous agreement with the FTC.

“With Timeline, Facebook has once again taken control over the user’s data from the user and has now made information that was essentially archived and inaccessible widely available without the consent of the user,” they said in a letter, adding that Facebook “promotes oversharing” and wants users to “abandon restraint.”

So, how do Facebook users feel about the Timeline? Is it just a bunch of isolated bitching, or is there mass concern? According to a poll by IT security company Sophos, a majority of people are apprehensive about the changes.

Sophos admits that their poll might have involved people who are a little more concerned with privacy and security issues than the average Joe, but it’s still a striking figure. With this kind of widespread apprehension, it’s no wonder that scam apps have popped up all over Facebook offering to deactivate users’ Timeline.

Other than concerns about crazy stalkers and shocked family members having access to evidence of debauchery, users are worried about identity theft. Could a yet-to-be-vetted Timeline serve as a treasure trove for cyber criminals that use personal information in various unsavory ways?

Sure, but let’s also think about it like this: Facebook isn’t crafting stories out of thin air and using them to populate your Timeline. Anything that the Timeline shows from five years ago, you willfully posted (whether you remember it or not). Sure, Timeline kind of opens up old wounds in a way. Things that you thought buried by time are now prominently visible again. Old information is inarguably much more accessible with Timeline.

But if you shared it, shouldn’t you own it?

And as far as the concern over frictionless sharing with new apps, the answer is fairly simple. If you don’t want everyone to see what you’re listening to with Spotify, don’t connect Spotify to your Facebook account. If their recent actions haven’t made it clear, Facebook is going all-in with sharing. That’s what “frictionless” means – without impediments. The free flow of information has to be curbed by the user, if they want certain activities to remain private.

But the bottom line for some: Facebook is putting the onus of privacy control on the user by putting it all out there and asking everyone to do all the work in making sure their privacy concerns are met.

Will the forced Timeline cause users to jump ship? I doubt it. It seems like every Facebook change brings out the “i’m gonna ditch” threats. Despite this, Facebook continues to grow – because it has become such an important part of our culture. But there is quite a bit of hate out there for the Timeline, so we’ll have to wait and see the reaction when it has finally rolled out to everyone.

About the Author:
Josh Wolford is a Staff Writer for WebProNews. He likes beer, Sriracha and Cormac McCarthy.

Twitter: @joshgwolf | Google: Google+

Facebook provides businesses with another way to interact with their customers or clients in addition to adding value.

Unfortunately, notwithstanding the potential, I often hear from Facebook Page owners that in spite of their hard work on creating their pages, they are frustrated by the fact that they have few fans, and the ones they have aren’t engaged.

Something that contributes to this problem is inadequate planning and no clear purpose for their Facebook Page. Purpose and planning aren’t the most exciting words out there, but they payoff big time. Once business owners take the time to put a plan, known as an editorial guide, in place, everything else falls into place. As a result of this, their fan base grows, and engagement begins to happen to the point where it no longer feels like work, but fun.

Here are some tips for creating an editorial guide for your Facebook Page.

Define Your Purpose

Ask yourself the following three questions to help you define the purpose of your Facebook Page:

#1: Why Have a Fan Page?

Hint: “everybody else is doing it” is not a good reason! Instead, consider what you hope to accomplish through having a Facebook Page.

#2: What Will Differentiate Your Fan Page from Your Website?

You need to think about what you can provide on your Facebook Page that will be different from what is available on your website. Think of ways that your fans can interact with you on your fan page that they can’t on your website. The more interactive your page is, the more successful it will be. Fans will have no reason to visit a static Facebook Page.

#3: Define Your “it” Factor

What is different and special about you and your employees? What do you provide that is different from your competitors? Build your fan page strategy around what makes your business unique.

Now that you’ve considered the three points above, it’s time to work on your editorial guide. Here are the things you’ll want to be sure to include:

#1: How Often Will You Post on Your Facebook Page?

Although we engage with our fans throughout the day on Social Media Examiner, we also have specific chunks of time set aside for certain types of content. For instance, in the morning, we post the latest Social Media Examiner article. In the afternoon, we post a link to content from a third-party that we know will be beneficial to our fans. Then, a few times a week, we post a question late in the afternoon. Although most of the questions pertain to social media, some are on other topics.

#2: Decide What Type of Content You’ll Post.

Knowing this ahead of time makes it easy to find great content for your fan page. At Social Media Examiner, we consistently find valuable content on about 20 different websites. It’s fine to branch out occasionally, but having a list of great sites you go to regularly for content makes it easy to find valuable content to share with your fans.

#3: Determine the Post Format.

Define ahead of time how you want you and your team to put posts together. Some pages are informal and conversational and others are more factual and informative, like a news source.

Since we have three people posting on our fan page, we always end each post with our names, so people will know who posted. This adds a friendly and personal touch to our posts.

#4: Plan Out How You’ll Respond to Your Fans’ Comments.

On the Social Media Examiner page, we have a goal of reaching out to everybody who makes a comment on our page. We want our fans to know we are listening to them and interested in their thoughts.

#5: Determine What to do About Promotional or Negative Posts.

It’s not uncommon for fans to post promotional bits of information regarding their services and products on your Facebook wall. This can make things cluttered and can hinder legitimate conversations from taking place. It’s important to determine ahead of time which types of posts you’ll allow and which ones you’ll delete. Be sure your entire team is on the same page regarding this.

One thing to keep in mind is that your editorial guide is just a guide, not something that can’t be changed. The goal of the guide is to keep things running smoothly without hindering you from going with the flow.

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About The Author
Article by Amy Porterfield simplesocialmediaformula.com