discussion

Identify and propose risk mitigation techniques from the company that is listed below.

Facebook’s entire source of revenue comes from the advertising that is done on their website.  According to their financial statement (Facebook, 2019)for 2019, Facebook’s ads increased by 33% as compared to 2018 with 22%.  This all came with a decrease of 5% in the price of an ad for 2019 while in 2018, it increased by 13%.  They describe their advertising as sometimes being seasonal so one of the risks the company would take is whether the advertising company would profit from their ads being on Facebook.  Facebook would want to find ways to link users with advertising that they would find most interesting.  They describe their main revenue growth priorities as being “helping marketers use our products to connect with consumers where they are and making ads more relevant and effective” (Facebook, 2019, p. 44).  This company is looking at every possible way they can connect with their users to get the most out of the ads that they post on their site.  They are making sure that the ads that the user sees are relevant to their life and what their needs and wants are so the advertising companies make the most from their expense.  With their revenue up 27%, it is evident that Facebook is making all the necessary moves to continue to build their business even today.