Facebook Revenue Doubles in First Half Year
September 8, 2011 by admin
Filed under Lingerie Events
The privately-held Palo Alto-based company doesn’t release financial information, but an anonymous Reuters’ source “familiar with financial matters” disclosed the revenue figure, in addition to reporting a $500 million net income gain for same time period.
Facebook’s strong financial numbers underscores its growing popularity among its advertisers. The social network hosts over half a billion visitors and provides a steady stream of clicks to big-name companies such as Coca-Cola, JP Morgan Chase and Adidas, a popularity that boosts what advertisers will pay for display ads.
The company’s early move to capitalize on the power of social networking by attracting advertisers put it ahead of competitor Google. The search giant’s chairman, Eric Schmidt, admitted the company failed to embrace social networking, just prior to rolling out its own social network, Google+, this summer.
In addition to advertising revenue, Facebook is doing brisk business from social gaming companies, selling virtual goods to the tune of $500 million.
As of July 1, Facebook began requiring game developers to accept payments through its virtual payment system, called Facebook Credits, which takes a 30 percent cut of online purchase revenue.
Facebook isn’t standing still while advertising dollars roll in and gaming revenue takes off. The company reportedly plans an IPO in the next several months, besides hinting to media executives that it intends to ramp up media streaming on its platform and allow online music services like Spotify to publish user activity on Facebook pages.
The rumored features may work similarly to News Feed posts that display which webpages someone “likes,” besides possibly making music integration Facebook’s first step toward offering users unlimited streaming for a monthly fee.
Facebook’s reputed media expansion, which may include music, films and new gaming revenue streams, may allow the company to broaden its already wide audience and continue to attract advertisers and likely keep it one step ahead of the competition.
