Where Come Facebook Income???

Today, Facebook become a phenomena to the people in the world. Every thing updated on FB such as your condition, your opinion, picture and so forth. To us is free but to FB is an advantage because it create the strength of it social website compare to their competitors. Do you know where come the Facebook income???what is their revenue???then this is the story, read it and imagine it.

Most of Facebook's revenue comes from advertising. Microsoft is Facebook's exclusive partner for serving banner advertising, and as such Facebook only serves advertisements that exist in Microsoft's advertisement inventory. According to comScore, an internet marketing research company, Facebook collects as much data from its visitors as Google and Microsoft, but considerably less than Yahoo!. In 2010, the security team began expanding its efforts to reduce the risks to users' privacy. On November 6, 2007, Facebook launched Facebook Beacon, which was an ultimately failed attempt to advertise to friends of users using the knowledge of what purchases friends made.

Facebook generally has a lower clickthrough rate (CTR) for advertisements than most major websites. For banner advertisements, they have generally received one-fifth the number of clicks on Facebook compared to the Web as a whole. This means that a smaller percentage of Facebook's users click on advertisements than many other large websites. For example, while Google users click on the first advertisement for search results an average of 8% of the time (80,000 clicks for every one million searches),Facebook's users click on advertisements an average of 0.04% of the time (400 clicks for every one million pages).

Sarah Smith, who was Facebook's Online Sales Operations Manager, confirmed that successful advertising campaigns can have clickthrough rates as low as 0.05% to 0.04%, and that CTR for ads tend to fall within two weeks.Competing social network MySpace's CTR, in comparison, is about 0.1%, 2.5 times better than Facebook's but still low compared to many other websites. Explanations for Facebook's low CTR include the fact that Facebook's users are more technologically savvy and therefore use ad blocking software to hide advertisements, the users are younger and therefore are better at ignoring advertising messages, and that on MySpace, users spend more time browsing through content while on Facebook, users spend their time communicating with friends and therefore have their attention diverted away from advertisements.

 

Revenues (estimated, in millions US$) Year Revenue Growth 2006 $52 — 2007 $150 188% 2008 $280 87% 2009 $775 177% 2010 $2,000 158%

On pages for brands and products, however, some companies have reported CTR as high as 6.49% for Wall posts. Involver, a social marketing platform, announced in July 2008 that it managed to attain a CTR of 0.7% on Facebook (over 10 times the typical CTR for Facebook ad campaigns) for its first client, Serena Software, managing to convert 1.1 million views into 8,000 visitors to their website.A study found that for video advertisements on Facebook, over 40% of users who viewed the videos viewed the entire video, while the industry average was 25% for in-banner video ads.

Facebook has over 1,700 employees, and offices in 12 countries.Regarding Facebook ownership, Mark Zuckerberg owns 24% of the company, Accel Partners owns 10%, Digital Sky Technologies owns 10%, Dustin Moskovitz owns 6%, Eduardo Saverin owns 5%, Sean Parker owns 4%, Peter Thiel owns 3%, Greylock Partners and Meritech Capital Partners own between 1 to 2% each, Microsoft owns 1.3%, Li Ka-shing owns 0.75%, the Interpublic Group owns less than 0.5%, a small group of current and former employees and celebrities own less than 1% each, including Matt Cohler, Jeff Rothschild, Adam D'Angelo, Chris Hughes, and Owen Van Natta, while Reid Hoffman and Mark Pincus have sizable holdings of the company, and the remaining 30% or so are owned by employees, an undisclosed number of celebrities, and outside investors. Adam D'Angelo, chief technology officer and friend of Zuckerberg, resigned in May 2008. Reports claimed that he and Zuckerberg began quarreling, and that he was no longer interested in partial ownership of the company.

On November 15, 2010, Facebook announced it had acquired FB.com from the American Farm Bureau Federation for an undisclosed amount. On January 11, 2011, the Farm Bureau disclosed 8.5 million in "domain sales income", making the acquisition of FB.com one of the ten highest domain sales in history. Wow!! can't imagine... can you???