How Facebook Is Making Money – A Case Study

How Facebook is making money is an issue that still baffles most of us.  We are all well aware of the debacles and the stock exchange fiascoes that accompanied the companies Initial Public Offer just the other day, but what only a few of us know is that the company is still poised to post profit figures that are in the billions of dollars, notwithstanding.

During its public offering analysts had placed a staggering value of around 104 million dollars to be the companies worth and a share was each going for 38$ a cap.

Other analysts were dismayed by this share offer as they could not find the revenue generating activities that were capable of warranting it in the first place.

More Than 500 Million daily Users

Advertising makes for a bulk of the profit the likes of Mark Zuccherberg and Inc continue to enjoy.  According to CNBC, facebook has an estimated 500 million active users per given day and there are close to a billion registered accounts all over the world.

This is indeed a marketers haven and the companies, both huge and the not-so huge have flocked to Facebook to try and get their message heard by these huge possible clientele base.

CNBC also makes it clear that at the time of the IPO advertising was bringing in around 85 percent of all their revenues.

From It’s Humble Beginnings Facebook Is Marketing Force To reckon With!

This figure was, however, a toned down version of what used to be the case some years back when the company had just been formed in one of the Harvard dormitory rooms.

But in as much as adverts have worked brilliantly, some factions are convinced that if Facebook is to withstand the trials and tribulations of the post-recession world then they will need to diversify their portfolio more.

According to the review article, how Facebook is making money; a case study it was revealed that the inability of most of the Facebook users on mobile to access adverts was a huge stumbling block that needed to be addressed quickly to save the day for Mark.

Besides advertisement where else do this telephone digit figures come from?

The Future Is Still Unknown, Or Is It?

The expose, how Facebook is making money: a case study that was used to predict what is expected in the tech-world in the days ahead also talked about how Zynga was bringing in around 12% revenue to Facebook.

This revenue came from either direct advertising on the gaming app or by the payments made for the stuff on offer on the same site.

Digging through their SEC filling we were also able to learn about how Facebook was planning on linking up with more games to replicate the same success in the future.

In recent times we have continued to hear about the Facebook mobile which is yet to hit the market but which may transform their current financial outlook for the better.

For anyone, not just those looking to buy their shares but for anyone who loves to follow the technology market we would highly recommend them to go over the review, how Facebook is making money: a case study and be enlightened on so much more!


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