Facebook has emerged prominent in the social network business. Having many millions of people using it, Facebook has been able to reap good profits in the last few years. For this reason, the corporation has continually improved and increased its avenues to consolidated revenues.
The latest revenue consolidation loophole was establishment of lightweight video ads. The injection of this new avenue on Facebook have improved its ability to generate more income as well as increasing its competitive advantage in the social media business.
The fact that change is a life process, Facebook have been planning on how to capture a larger market share by trapping more than 3 billion people who are expected to go online in the next four to five years.
The recent advancement which enables users to view videos using a 2G network is expected to encourage more people to use Facebook to advertise their entities. This notion will help Facebook monetize every chance their get hence drastically changing their financial position.
According to Facebook the new ad technology will be useful in two ways. Firstly, it will denotes the Facebook ambitions to become the leader in the social network industry in the world. Secondly, the advancements will display a dramatic economic change where the company will become more profitable. To put their ambitions into practice, Facebook have target developing countries since in this regions there is low connections and the phones being used are of low quality. Even with a poor network connectivity persons can be able to load new information hence optimizing its usability.
Facebook strategic plan aims at exploiting the new market niches the same way it monetized the American market. This is imperative because the same commitment employed in America will be used in the new markets. This will ensure that advertisers will be able serve themselves for instance by uploading 3-7 photos and Facebook will form a 15 second slideshow containing the pictures. This is a technological and economic milestones which have been tested using Multinational Corporations like Netflix and Coco Cola.
If Facebook will be successful in this venture it will create an economic revolution in many entities. This is because Facebook have a massive pool of users who originates from all walks of life. For instance, by doing this Facebook will help improve humanitarian projects and also help people overcome poverty. On the other hand Facebook as a Corporation will grow therefore maximizing its owner’s wealth.