How Facebook Generates Revenue: Breakdown per segment
This via Techcrunchies.com (fast becoming one of my favourite sites online):
How big is Facebook? With nearly 400 million members on board, the company is a pretty big subset of the internet. With such a massive audience, the revenues from behavioral targeting, social gaming, partnerships can bring a lot of revenues.
According to a study by Inside Facebook, the social network could have well made over $600 million in 2009 and can make close to $1.1 billion in 2010*.
Estimates for 2009 per revenue segment:
That is…
· Performance advertising: $350 million
· Brand advertising: $225 million
· Microsoft ads: $50 million
· Virtual goods (Credits): $10 million
Personally, as consumer trust in social networks goes from strength to strength, it won’t surprise me if the biggest revenue growth for Facebook in the coming years would be found in the Virtual Goods (Credit) segment.
*that is 1/5th of what Google made in 2009 (http://investor.google.com/releases/2009Q1_google_earnings.html)
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