3 Ways the IPO will Change Things for Facebook Users

The Facebook IPO set a stock record with more than 460 million shares traded. Obviously this will changes the lives of many who will become billionaires or millionaires with the social media site going public.

But how will affect those who use Facebook, and didn’t necessarily show any interest much less participate in the company going public?

Here are 3 ways by which the IPO will change things for Facebook users:

#1: More Ads

Facebook generates revenue by advertisements. With the company going public, there will definitely be an increase in the number of these ads as investors will put pressure on its management to meet quarterly targets. Of course, to add to this, it’s also expected that considering the IPO valuation that just took place, there will pressure to increase its revenue and net income substantially.

#2: Less User Privacy

Yet again, it all comes back to ad revenue. Google, for example, uses searches to provide users with paid ads that might sell the very product or service that the person is looking for. This happens in real-time too, and is the reason why the company makes about $ 9.52 per user in a month as opposed to $ 1.32 for Facebook. All this might change, as with the increased pressure to generate more revenue, Facebook will have to mine user data that has been largely unexplored until now with a result of less user privacy.

#3: Facebook generated content

Until now, Facebook runs on user-generated content but it is possible that they can generate content of their own and compete with the likes of Groupon, Craigslist and Yelp. The potential is unlimited considering the data that has been largely untouched until now amounting to almost 900 million Facebook pages.