Today the news is all about Facebook, when we get confronted with: ‘Over $119bn wiped off Facebook’s market cap after growth shock‘, we suddenly see that the story given (at https://www.theguardian.com/technology/2018/jul/26/facebook-market-cap-falls-109bn-dollars-after-growth-shock) is one that has global ramifications. There are several quotes that give rise to concerns and opportunities. The quote: “More than $119bn (£90.8bn) has been wiped off Facebook’s market value, which includes a $17bn hit to the fortune of its founder, Mark Zuckerberg” is a robust one, especially when we realise that it links to “Facebook’s shares plunged 19% on Thursday in New York, a day after the Silicon Valley company revealed that 3 million users in Europe had abandoned the social network since the Observer revealed the Cambridge Analytica breach of 87m Facebook profiles and the introduction of strict European Union data protection legislation“. You see, this reminds me of the movie Blue Earth II, we see a dead Sperm Whale at the bottom of the ocean and the Sixgill sharks are having a feeding frenzy. In this case Facebook is the sperm whale. Now, it is an exaggeration, Facebook is not dead, not by a long haul. But the opposers and contenders for social media are nipping at the heels of Facebook and Mark Zuckerberg needs to wake up and act. For two people it is equally an interesting day. You see, this setting proves that Vic Gundotra and Bradley Horowitz were right all along when they created Google+. They did the right thing, the right approach and I do hope that those people abandoning Facebook will turn onto the Google+ highway, I personally always had both. I did not stop Facebook because of Cambridge Analytica, I always saw these risks to some extent, so I decided to remain decently clever on how I used Social Media, I was merely unaware that Facebook would be this stupid about it, but that is what happens when you are asleep at the wheel. In this case, for Mark Zuckerberg losing $17 billion the day was an extremely rude wake up call, all that whilst I gave him the option to own the next gen tech for a mere £20 million post taxation. I reckon a most expensive month for Marky Mark (do not confuse him with the other Marky Mark who is governor of the British bank). In this I also think that the market overreacted slightly. When you consider the quote: “The collapse came after the company told investors to expect a significant decline in growth rate, and revealed that the number of users in Europe had fallen from 282 million to 279 million“, we are either not getting part of it, or we need to realise that confidence can be gained back with the proper developers. It merely requires one visionary to change the game. The fact is that there is a second option for Facebook and Mark Zuckerberg does have the cash to make it work, optionally getting him an additional estimated 20 million members from the start and a lot more down the road (it’s not going cheap though). If we agree that the markets are about data and that the equivalent of members adding to that data is wealth, the setting of his currently loss could be overcome within 14 months, 21 months at the most. You see, it is not about what can be added, Facebook is seemingly not looking where it currently is not. That is where the chunks of lost members are optionally found and it is also where boatloads of new members can be added too, you merely have to be able to look at the facts that not all the fishes are in the ocean. You see, we all ignore the Nearshore fish, but when we realise that Australia has 25,760 Km of beachfront space and that within 10 meters there is an option to gain many millions of Nearshore fishes, how would I best go about it? You see, when it comes to fish, we think like a swimmer, or like a fisherman (in a tinny or not). Yet thinking like a surveyor gets us the boatload as well (just a lot quicker), we merely had to change our hats to get to the goods, it was THAT simple.
In this David Wehner makes close to the same mistake. with “the company’s decision to give its users “more choices around data privacy” following the Cambridge Analytica scandal “may have an impact on our revenue growth”“, that’s merely damage control and that is important too, let’s not be coy about that. The setting is that we are merely looking at one fish, like me (growing up in Europe), I know my Herrings, My Cod (a Captain Hook pun) and my Turbot, yet until I moved to Australia, I had never known how tasty the Pacific Dory was (not the one from Finding Nemo). It enabled me to create the Fisherman’s Pie (a Shepherd’s Pie variety). I merely adjusted my direction a little and a new option was created plain and simple, Facebook has all the makings of doing exactly the same, but can it figure out how to get there? Well, no matter how nerdy clever Mark Zuckerberg is, the fact that he lost 17 billion and I am merely trying to get my fingers on a mere 0.32% of that loss seems that I am either hungry or a little too stupid, I’ll let you decide.
Facebook also gives us “Zuckerberg said his company aimed to hire 20,000 people by the end of the year to boost its security and help review suspect content on the site. It has been hiring extra bodies at a vast rate, with its headcount increasing by 47% since last year to more than 30,000 people“. It is one step and I am not judging in any way, it is a path Mark Zuckerberg needs to walk, but in the end, he will end up hiring close to 50% more if he is to make the step from where he was do where he should be adding millions of users because the market allows him to do that, with additional benefits down the road in both the members and advertisers available. When I was learning about AdWords (Google Ads), I saw the granularity that Facebook offered, but in that same setting he missed out on engagement, which is a first sign of fake accounts, that path would be covered giving Facebook the direction, where the users themselves the option to tag fake account, because users rely in engagement and interactions, that part alone will stellar the value of Facebook much sooner than ‘now+21 months‘.
And the funny part is that it is in front of all the faces in Media and at Facebook HQ. I reckon that Google has figured it out, they seem to be on path to do something about it; the question is when the snooze alarm of Mark Zuckerberg will force him to take notice as well. That is the ballgame that should matter, in light of the shifting like ‘the new Nine Fairfax media magazine‘, it stands to reason that most are merely looking in their own shipping lanes, yet the setting has changed, because it is not those who can navigate the media seas, or get through the clouds of media, it is about the option to do both. It was a Frenchmen that came up with the idea and after a while we got to the date of March 28th, 1910, when Henri Fabre flew the first Hydroplane. One of the last pioneers of human flight left us in 1984 at the age of 101. He was there and he patented the invention, we need to realise that the state of matter storage does not impede data, in this Facebook and Google have the upper hand in getting the IP in the right place, will they follow through in this, or will they buckle and end up being food for the hungry sharks who found the opportunity and decided to dig in?
Let’s realise that Facebook and Google are too big to be devoured, but they are in a stage where others can grow due to the stagnation of these two. You see, we might see stagnation with Google, whilst some call it saturation and there is the crunch, how to overcome saturation. Even as I oppose the American view that saturation does not exist, the fact is that saturation is overcome through direction and medium. You need to remember that there is more than one side here. Some will give you ‘ads are delivered through a medium marketed on the promise‘ (or is that premise)? Some will give you ‘the consumer is concerned with the ROI regarding value rather than money‘, or ‘each medium offers a specific set of placement options‘ (source: Alice Jackson, Design Hill). Yet in all this we forgot the one part, we forgot about ‘Who is exactly the consumer?‘, it is like in Market research we state that the population agrees, but what made it ‘the population‘? Is it every nymphomaniac that owns a liquor store (a Dutch Comedian pun), or is it whomever you want it to be? The first is targeted, the second is the Holy Grail and that grail is available if you take media into a new light, because affiliated exposure will become increasingly important. In the previous media cycle it was not so cleverly regarded as ‘the Mobile Market‘, now that 5G firmly on route some people will need to get clever fast, because the first one in that market with the proper setting will get to rule that market ahead of anyone else giving them a large advantage. The rule here is engagement and some marketing firms and digital marketing dealers are still not aware what is required. The few players that do get it are now ahead of the game. They will have a large headway into growth and that is the part where Google and Facebook need to grow, not tomorrow, not next month, it should be today (although yesterday would have been better)! That evidence is seen throughout my articles over the past year and for the most I have been proven correct for well over 80% on this matter, people have wagered their billions (aka Mark Zuckerberg) on foundations a lot more shaky than most would have acted on; and whilst we think that Mark Zuckerberg is in a corner licking his wounds, he must move forward as fast as he can. He needs to realise that the current advantage that he has with Google will not stay there forever.
Because it is not this bite, it is the next bite and the optional seven Sixgill sharks that will make short work of the social media corner, the others have too much to gain not to go after any potential carcass in the waters. In the end Facebook does not need to take any risks at all with the right path forward, so why tempt the sharks to come and take a nibble?
Lawrence van Rijn - Law Lord to be 