The Benefits of Facebook Buying

Facebook is not afraid to make acquisitions. Buying companies is a smart business move for a number of reasons. For starters, a large company can improve its brand recognition, and small businesses can benefit from their presence. It also helps to have a vision, and the acquisition of FriendFeed or Pebbles Interfaces could improve Facebook's news feed. It could also help it expand its virtual reality capabilities. This type of acquisition costs a small company around $50 million.

Another reason for Facebook's recent acquisitions is to increase its reach in the mobile space. It was unable to do this without acquiring Beluga, an Israeli mobile messaging app company. Group messaging became a major focus of Facebook's mobile endeavors. In addition, Facebook bought Snaptu, an Israeli company that developed a mobile app for most mobile devices. It is unclear what Facebook will do with these companies. But Facebook is betting big on mobile, which is where it will continue to be competitive.

Another benefit of Facebook buying is its ability to track user behavior. This data is useful to understand whether a certain audience is interested in your product. For instance, if your product is relevant to people who like similar products, Facebook will be able to tell if your ad is a hit. Then, if the ad is effective, it will be displayed prominently in front of your target audience. The key to success is to understand the buying behavior of your target audience.