Facebook is a popular social networking website, founded by Mark Zuckerburg
in the year 2004. As of now it has more than one billion active users
and it is a major source of entertainment for most of the people around
the world. It is effectively used by the people to interact with others
for both personal and professional purposes. If you are searching that how facebook is earning money read this post carefully you can easily understand how does facebook make money.
About 1/3 rd of Facebook’s revenue comes
from mobile advertising. Recently, it launched its own App center
similar to Apple which let the users to download their desired
applications from appropriate store directly and getting paid from the
developers.Also it cooperates with mobile advertising agents to help the advertisers like AdMob and iAd to bid for the space to advertise.Moreover, the Facebook starts its monetization strategies with Instagram.
Advertising is the best main reason of Facebook’s success. Many businesses
create ads on Facebook and it gets paid to deliver the ads. It publishes
ads on the screen which is directly related to the users by gathering
their likes and activities. i.e. if an user mentions that he/she is a
fan of Coca-Cola, then the ads related to that will be showing up to
that user. Even though the click through rate of Facebook is not as high
as Google, it is generating good traffic with the ads in it
and letting the businesses to have a successful advertising campaign.
This type of ads is called Engagement ads and it is placed on the
homepage of Facebook.There is another type of adverting called self-serving ads, in which the users can set up their own advertisements.
Facebook is generating good revenue from
its credit program as it is an easy payment for the users to buy virtual
goods, to play games and to use various applications.
Facebook is widely expected to release the Facebook Credits product for
developers at this year’s f8 developer conference being held in San
Francisco this April. While it will only begin rolling out later this
year, we expect Facebook to generate $150 million in revenue from their
Credits platform this year. This could expand up to a few hundred
million in a short period of time as the volume of virtual goods sold on
Facebook grows beyond $1 billion a year.
Facebook makes money a number of ways however advertising is the
company’s revenue channel. With self-serve ads becoming a booming
business for Facebook and with the growth of Engagement Ads, Facebook
could be on track to generate up to $1 billion in revenue this year.
While our estimate is aggressive, Facebook has been experiencing
continued growth and through further education about the company’s
advertising products, we’d expect Facebook to stay on track to almost
double previously quoted estimates of last year’s revenue: $550 million.
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