What are Facebook's revenue streams

How does Facebook make money?

It took Facebook a long time to find a way to make money.

Many have already doubted whether Facebook will ever make it into the black.

In this article, I'll take a closer look at how Facebook makes money and what the forecasts for the next few years look like.

How does Facebook make money?


advertising

After many years, Facebook has finally found a good source of income.

Using advertisements on your own pages and a simple interface for advertisers, you have copied the success of AdWords and established a lucrative source of income.

The income and the future forecasts look pretty good, even if these values ​​are still far below those that Google can show.

Nevertheless, Facebook is now in the black.

What does Facebook do for money?

The total income can be broken down into 3 divisions.

The strongest division is currently the desktop area. Although the mobile use of Facebook is increasing sharply, around two thirds of revenue is currently generated by desktop users. More advertising can simply be displayed here.

However, the income from the mobile version is increasing and will become more and more important in the future. In the third quarter of 2013 it accounted for 23% of total revenue.

The third pillar is Facebook Exchange. This is the retargeting solution from Facebook, with which, for example, online shops can convince their visitors to buy after they have left the shop with suitable advertising on Facebook.

Where does Facebook make money?

Anyone who thinks that Facebook is an American company must now rethink. Although Facebook is still based in Menlo Park, USA, it is now a global player.

According to the following statistic, more than half of its revenue comes from outside the United States:

to statistics

The USA advertising market is still very important for Facebook, but it can be assumed that this share will decrease over the next few years.

What's the future like

The development of the income looks quite good, but not everyone is satisfied.

The Facebook share is now well above the issue price again, which is a good sign.

However, there is currently speculation that despite new visitor records (Facebook currently has 1.19 billion users), young people are turning their backs on Facebook.

Allegedly, the use by young people is falling slightly, which is partly due to the fact that a lot of adults (including parents of course) also use Facebook.

Facebook now has users from all ages and of course it is no longer a “hip” place for young people. These are increasingly switching to Twitter, Tumblr, Snapchat, WhatsApp and other providers.

Let's see how this development affects the future of Facebook. Sure, it is quite normal for a company of this size to reach all walks of life, but today's young people are tomorrow's adults. And those who refuse to use Facebook today will not necessarily come back later.

No wonder Facebook recently wanted to buy Snapchat. But the startup turned down a $ 3 billion offer. It is expected that the value will continue to rise, at the expense of Facebook.

It will definitely remain exciting and the future will show whether Facebook will continue to develop positively (also financially) or whether it has reached its zenith.

Free newsletter with tips, examples, insights ...





advertising
«Previous articleNext article»