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how does Facebook Makes money?

  • Broadcast in Social Networking
Marco Giunta

Marco Giunta


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Did you ever wonder how Facebook Makes money
Here is a discussion about it
Facebook’s IPO filing this week confirmed what we already knew: Facebook makes the vast majority of its money by selling ads on its site.
But now we know just how much of its revenue comes from advertising: 85% in 2011, with the remaining 15% coming from payments and other fees.
...Zynga, the company that makes FarmVille and other popular Facebook games, is driving the growth in Facebook’s payments business, and is therefore driving Facebook’s revenue diversification away from advertising. ...  Some 12% of Facebook’s revenue in 2011 — but less than 10% in 2010 and 2009 — came from Zynga.    That includes revenue for processing payments — Zynga is the bulk of Facebook’s Credits/payments business — and also advertising that Zynga purchases on Facebook.
Netflix bought $3.8 million worth of advertising on Facebook last year, representing 0.1% of Facebook’s total ad revenue.   The Washington Post company bought $4.2 million worth of ads from Facebook last year, also about 0.1% of Facebook’s total ad revenue.