Tuesday 23 August 2016

Facebook is growing thanks to digital advertising



It was already known that online advertising was the backbone of Facebook , but during 2017 may even increase the company's value by about one fifth of the current value.
The financial power of the largest social network in the world emanates , above all, the digital advertising and , according to information published by Barron's newspaper in 2017 might be responsible for an increase of 20 % of the company value. For its part , Reuters said it expects the social network , which owns popular platforms like mobile WhatsApp , Instagram and Messenger , will reach 1.7 billion daily users within four years , compared to current 1 , 1 000 million.
Facebook is fully aware of the key role that advertising plays in its growth. However , it is noteworthy that this advertising is " compulsory consumption" , ie , users will have to see, whether they like it or not. This move was seen as a " declaration of war" to ad blockers , since the new algorithm of the social network is able to neutralize the action of adblockers and continue to display ads.
Digital advertising is the " breadwinner " of much of the online platforms , and subtract this variable of the equation could even mean the ruin of some industry giants . Hence, companies like Facebook look increasingly take advertising to users - even if they do not want - under the guise of wanting to provide the best possible experience.
According to data from Page Fair, between 2014 and 2015 , the number of users to resort to adblockers increased 41 % worldwide .
Facebook is currently valued at over 40 billion euros and can reach close to 50 billion euros already in 2017 , with a " push " of online advertising.


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