The Money Making Side of Facebook
Facebook may be free to use, but that doesn’t mean it’s not a money making machine.
A new infographic from GreatBusinessSchools.org reveals where this money is coming from, totaling over $1.5 billion per quarter in advertising alone. Facebook accounted for 6.5% of all online advertising dollars spent in the United States in 2012.
Gaming ads have been the most popular revenue sources for Facebook, with Zynga and EA representing the top two advertisers on the site. Walmart, AT&T, Groupon and American Express are all part of the top 10, and the financial services sector makes up 50% of Facebook’s ad revenue.
In 2012, 27 million people bought virtual goods through Facebook Payments. This came to a total of $810 million, with all but $5 million of that coming from games.
Facebook’s engineering director Doug Purdy said, “Facebook really represents an opportunity to connect over 900 million people, but we hope one day for it to be the entire world.”
We’ve seen massive growth spurts in this site since its formation, and there is no sign of that stopping any time soon. As long as people continue to use this social network, Facebook will continue to generate substantial revenue.