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Why Did Facebook 'Rebrand' Facebook?

Why Did Facebook 'Rebrand' Facebook?

Facebook, Inc. (NASDAQ: FB) announced a new logo Monday to differentiate the parent company of services from the original app that shares its name. The new concept is all caps and color-adaptive to suit whichever subsidiary is open.

“The new company branding is designed to help us better represent the diversity of products we build, establish distinction from the Facebook app and communicate our purpose in the world,” representatives said in a press release.

It’s also meant to clarify ownership of Messenger, Instagram, WhatsApp, Oculus and Workplace.

“Many people don't know we build these products or that our teams often work together,” CEO Mark Zuckerberg wrote in a blog post. “But we believe people should, because it's important for people to know who's behind the products they use. Today we're introducing a new company logo to be clearer about the apps and technologies that come from Facebook.”

Intentional Distraction?

One insider told BuzzFeed the company is emphasizing its ownership of other brands to preempt additional Federal Trade Commission accusations of deceptive labeling. In July, the FTC fined Facebook $5 billion for violating privacy laws.

However, some media experts suspect the overhaul is an intentional distraction from the company’s regulatory scandals and political demands for a break-up. Facebook has recently been the center of antitrust investigations and Capital Hill hearings, and its reputation for spreading falsehoods is back in focus this election season.

“If you're having a bad press day (month or year), make the news about something else,” marketing expert Victoria Reitano told Salon. “I also think Facebook is doing this to bring together the other products while still giving the other products space from the ‘issues’ of Facebook.”

One crisis management expert said the parent company may hope to lean into the stronger reputations of its non-Facebook platforms to improve its public perception. Whatever the reason, Facebook doesn’t yet seem finished with its transformation.

“As the company continues to evolve, we hope this brand can help us better communicate the progress we’re making,” the press release said.

Facebook's stock closed Monday's session at $194.72 per share.

Related Links:

Facebook's Strong Quarter, Outlook Have Sell-Side Hitting Like On The Stock

Facebook Sued For Discriminatory Financial Services Ads

Photo courtesy of Facebook.


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