Company Formation Owners must Corner the Youth Market

When a massive internet site sells for an even bigger amount of money, widespread confusion and disbelief always follows. People can’t understand why a site which doesn’t actually sell anything can warrant such a large price tag.

Speculation grew this week that social network juggernaught Facebook may be looking for a buyer and as it was most recently valued at $750 million, retailers and consumers alike can’t believe that any corporation could justify this expenditure, for what is ultimately, a non-commercial platform.

And therein lies the misunderstanding. The reason why Facebook owner Mark Zuckerburg, can afford to name his price is quite simple really; he isn’t selling a tangible product per se, but he does hold the key to the door which unlocks the new generation of consumers – the youth market.

As the traditional advertising model is becoming virtually obsolete, the power of online marketing has grown exponentially and companies recognise the fact that if they don’t harness that power in the future, then they may become obsolete.