G10 Global understand that media reports suggest Mark Zuckerberg is facing potential lawsuits, as well as reports suggesting Facebook’s advertisements are ineffective and the social networking giant now even being linked to crimes. According to The Daily Mail: “Facebook's botched Initial Public Offering has drawn yet another lawsuit as angry investors are claiming Mark Zuckerberg knew his company's stock price would tank and sold out $1.1 billion-worth before shares slumped.” Also, a new Reuters/ Ipsos poll found that one-third of Facebook users spend less time on the site now than six months ago and that 80% of Facebook users have never bought a product or service as a result of Facebook advertising. Perhaps most importantly, 44% of the survey group said the troubled Facebook IPO has made them feel less favourable about Facebook.
As experts in Direct Sales & Marketing, G10 Global understand the importance of having a positive public image, dealing with their customers on a face to face basis daily. It is for this reason they believe the damage caused by reports that Zuckerberg withheld information before the initial IPO will not only affect investors but users of Facebook too. George Kennedy, Managing Director at G10 Global explained: “People need to be able to trust you and your brand. That’s why we use direct methods and it’s why we invest so much time into our people; our customers meet us and we create trusting, long-term relationships.”
G10 Global has watched as Facebook has become an increasingly important marketing tool for businesses all over the world and believes the uncertainty surrounding the social networking site will leave many businesses assessing other advertising options. Only time will tell if this marks the start of the end for Facebook, or whether it will be but a small blip in a long and dominant campaign as the centre of the social networking universe.