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Old 05-18-2012, 07:33 PM   #28
JessiPollo

Join Date
Oct 2005
Posts
420
Senior Member
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So in what way do you suggest Facebook will generate revenue? Do you think we will have to look at ads before we view people's profiles? Ads before we view videos with ads on? How about pay to promote your own posts? The latter its already being trialled. There is not much Facebook can do to generate revenue that would not irate its user base. You can skip most YouTube ads after 5 seconds; embedded videos don't normal have pre adverts, just adwords.
No, that's Google's model, although that's worked pretty well you'd have to say. Facebook will generate revenue in a variety of ways on top of basic 'ads', which managed to bring in more than $3bn in revenue last year:

- Games: Zynga has already shown it can basically print money, and you can bet more sophisticated social games will be on their way. About 30% of Zynga's current share price is because of one game; Texas HoldEm Poker. That makes that one game worth $2bn. How much is Diablo III worth?

- Marketing: Got a friend who just bought a new Sony TV, and blabbed about it on Facebook. Hit 'like' or make a comment along the lines of 'I need a new TV too' and boom! Suddenly a special offer just for you, your income, location, buying habits. Maybe even a special 0% interest offer on your credit card (purely by coincidence of course) to tempt you even further.

- Streaming Live Events: If Facebook have any imagination, they'll start doing this, and make a load of cash

- Information: Facebook already provides information about you to intermediaries who sell it on to credit agencies, recruiting agencies, academic institutions and others.
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