Facebook’s 2 Revenue Channels

Posted by xiaoqy on
Friday, November 7th, 2008 at 5:37 pm

Though growth is Facebook’s top priority, Facebook co-founder Mark Zuckerberg revealed Facebook’s revenue strategy yesterday in an outstage interview. Facebook has two revenue channels: direct ad sales to brand advertisers and a self-service online ad platform that lets advertisers buy ads with a credit card.

Facebook works with two-thirds of the top U.S. advertisers and approximately 25 percent of the country’s retailers created Facebook pages in 2008 to promote their offerings, according to a survey by Shop.org, a unit of the National Retail Federation. Facebook also has “thousands and thousands” of marketers buying self-service ads.
Facebook already made profit besides it’s attraction to Microsoft together search revenue in the social networks.

2007 Oct. Microsoft established deeper partnership with Facebook to complete Microsoft’s search strategy. Microsoft cash shelled out $240 million for a 1.6 percent stake in Facebook. This investment valued the social network at $15 billion a figure that was more than even the most generous estimates of Facebook’s worth.