Facebook Inc (NASDAQ:FB): The Billing Issues That Might Surface


Dallas, Texas 12/26/2013 (FINANCIALSTRENDS) – Mobile devices are now the preferred method of surfing the Internet as well as accessing various social networking sites. If you are one of the millions of Facebook Inc (NASDAQ:FB) users who access the site via your mobile phone, it is important for you to note keep an eye on the new video element. This is not because of its attraction quotient, but because it might just end up pushing you over your stipulated data allowance.

The NewsFeed news

This new element in the FB NewsFeed shows video ads as well as videos that have been posted by your friends. This will show up in the content you see. However, if you are not connected to Wi-Fi, watching the videos that have been posted by people you know, might just end up swallowing some of your data allowance.

The company has been doing tests for quite a long time now with its NewsFeeds, even as it tried to hold the attention of advertisers and marketers. This is the one sure-shot method of garnering revenue and the company is trying its level best to up its advertising efforts into the next year. Facebook Inc (NASDAQ:FB) says that all these ads will not actually be downloaded on mobile for the moment unless you are on Wi-Fi. There is still no clarity about how long this will be the case. If a user does not want to view these videos and ads, they will have to be blocked via settings on the device.


The billing issues that might surface

And so, users who do not want a rude surprise with their nest phone bill will have to make a note of this. The video downloads can be disabled over mobile data. The company started introducing these user videos into its NesFeeds in September. At that point of time, Facebook Inc (NASDAQ:FB) did not offer any specific information about whether this download would take place over mobile or Wi-Fi. On December 17, the company said that it is offering marketers a new way of telling stories in the NewsFeed- it was referring to the introduction of video ads.

Aggressive launch 

Facebook Inc (NASDAQ:FB) has been marketing its new video ads very aggressively. It is a known fact that billions of dollars are channelized towards ad spend on TV and Facebook is trying to ensure that some of those big bucks get diverted towards its globally popular platform. It is trying to attract all the big brand and the advertisers who have massive budgets and thus has very steep price tags attached to these video ads. But if the advertisers and marketers latch onto the idea, it can prove to be lucrative for them and immensely lucrative for Facebook Inc (NASDAQ:FB)

More efforts 

Apart from all of this, Facebook Inc (NASDAQ:FB) also announced its PO of 70M shares at $55.05/share. The company expects to raise approximately $1.48 billion from this offering. Facebook Inc (NASDAQ:FB) plans on using the proceeds from the offering for capital needs and other general corporate purposes. Approximately 27 million shares were offered by Facebook Inc (NASDAQ:FB), while approximately 42.99 million shares were offered by certain stockholders, like Mark Zuckerberg the company’s co-founder and Chief Executive Officer.