) recently disclosed that it will allow users in the age group of
13 and 17 to make public posts. So far, posts made by teenagers
could only be seen by their friends and "friends of friends."
We believe this is a clear cut strategy to combat rivals such
as Twitter, which allows teens to share their messages publicly.
Moreover, Twitter also lets users' posts their comments
Facebook's privacy and public policy manager, Nicky Colaco
stated that the step has been taken after several meetings with
teenagers who are inclined to make public posts on the social
network for reasons such as fundraising, sports promotion and
We believe this strategy by Facebook and other such social
media players is aimed at generating more advertising revenues,
as marketers are trying to target teenagers through these social
networking sites and increase traffic to their websites.
As per recent data available from investment research website
investors.com, Facebook constituted about 10.4% of referrals to
publishers. Pinterest grabbed the second place with 3.4% of the
referrals, whereas Twitter secured the third place with 1.3%.
Apart from Facebook and Twitter,
) social network Google Plus are also trying to jump the
bandwagon. Google's YouTube and LinkedIn recovered from the
year-ago quarter. While YouTube witnessed a 53% rise in traffic
referrals from the past year, LinkedIn was up 35%.
So, we believe that the current step taken by Facebook will
encourage advertisers who can help them win additional business
and earn more revenues.
Facebook currently has a Zacks Rank #2 (Buy).
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