From our perspective there are four major impacts:
1) Facebook will become Corporate Australia’s best “Friend”
Facebook, as a result of the IPO; will be subject to the governance framework of a listed organisation. Within this governance framework investors would have valuation and growth expectations for Facebook. We would see Facebook Australia investing in its front office in order to grow its revenue base in the form of sales and marketing headcount.
2) Online Marketing Spend
We will see even more marketing spend move into Facebook. We see this claim by the CEO of Procter & Gamble in relation to the value of these digital channels. The loser will be traditional media and Google.
Aligned to the valuation expectations in point 1) Facebook will have a big bank balance to invest in new revenue sources. It is important to remember that Facebook is a platform and has been built with integration in mind. Zynga (makers of Farmville and other games) today accounts for 12% of Facebook revenue. Facebook will seek to acquire organisations that deliver repeatable revenue streams on its platform. This will create fantastic opportunities for innovative Australian start-ups.
4) Social Enterprise
Social Networks through both LinkedIn and soon to be Facebook IPO’s have legitimised the notion of these networks being strategic business platforms. Listed Australian organisations will adopt the principals of the social enterprise and technology to support innovation, collaboration, communication, global team-work and customer/supplier integration. The notion of Facebook’s “Hacker Way” will be universally adopted in corporate Australia and enabled by the “Facebook of the Enterprise“.
What are your views?
Any other impacts to the local Facebook operation?