Having reached the age of maturity, it is time for Facebook
to go through that rite of passage reserved for those who count their wealth
not only by pocketed assets, but in the promise of the one-percent’s bright
future. Yes, reader, it is time for the big business equivalent of the
cotillion ball: the IPO road show, where white ball gowns are replaced by
Armani suits, and slightly stronger alcohol.
On May 18th, Facebook makes an initial public
offering—IPO, to those of us who actually read the Wall Street Journal—and
seeks a staggering valuation of $100 billion dollars. That’s about 33 times its
advertising revenue. As a point of comparison, Google’s worth is $200 billion,
which is 5.5 times its ad revenue. This is where one begins to see the promise
part of this debutante’s pedigree, as ad revenue is kind of an important number
when it comes to valuing a company.
However, just as with any social function that involves
strapless gowns and up-do’s, pretty goes a long way to blunt thinking of the
past and turn thoughts to the possible delights found in a future dancing with
the girl with the most friends at the party. Such is the hope of Facebook as it
fills its dance card with investors. But it didn’t help Facebook’s popularity
when Martin Sorrell, CEO of WPP, the world’s largest advertising company, and
“da man” to many who are trying to manage a fracturing marketing paradigm, came
out to question the measurement of social media.
We asked that same question, and did something about it,
connecting consumer engagement with a category with consumer engagement with
Facebook within the context of that category, to measure exactly what was in
the cross-hairs of where they meet. In short, helping advertisers measure
exactly what they should be doing on Facebook, as well as what they are getting
from being there.
We were not invited to the recent IPO ball. But we will be
happy to attend the many after parties where advertisers take off those tux
jackets and slip off the heels, getting down to the real work of figuring out
the dynamics of this new brand and Facebook hook-up.
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