PostRocket failure

PostRocket

Facebook page marketing platform

Description

PostRocket was a Facebook marketing platform, co-founded in October 2010. The company products and services were concentrated on marketers that needed a higher quality and more wide-ranging engagement on their Facebook pages so as to increase their sales. PostRocket had the goal of creating awareness by posting more engaging and friendly posts through the use of an algorithm that sorted out what the most effective posts for targeted users were. PostRocket helped FB page owners get custom content recommendations tailored to their specific customer base. Page owners could get Insights from their own panel which would help them optimize their post for type, frequency, content, and timing.

Stats

Category
Analytics
Country
United States
Started
In 2010
Closed
By 2013
Number of Founders
Two
Name of Founders
Murry Ivanoff, Tim Chae
Number of Employees
Between 1 And 10
Number of Funding Rounds
2
Total Funding Amount
$610K
Number of Investors
7
Precise Cause of Failure
Poor Product
Business Outcome
Shut Down

Cause of Failure

After three years of operations, Post Rocket closed down in August 2013. The CEO of the company, Timothy Chae, reported to its customers through an email some of the main reasons for the closure.

First, Chae admitted that the company had set for itself unrealistic goals, which were hard to strategize and they achieve most of them. Their product was unreliable and they were not able to quickly expand also due to how the landscape of Facebook marketing changed. Many technical issues like bugs and periods of downtime affected the quality of their service and they were not able to get rid of them since they also had to keep up with the frequent changes on the FB platform.

Most importantly, FB itself rolled out in that period it's own Insights service which any Page owner could use for free to learn about their audience, receive detailed statistic and receive optimization suggestion. Chae actually encouraged his then customers to use FB Insights in his shutdown announcement email.

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