March 5, 2010 by Matt Thomas
The ever increasing popularity of social networking site Facebook is showing dividends for the company as this week it was revealed that their finances are even healthier than expected. The site is reported to be well on its way to hitting $1billion in revenue by the end of 2010.
The numbers come from tracking site Inside Facebook, frequently used by the company’s horde of developers and advertisers. Figures from their site indicated that Facebook made $635 million in 2009 which was a massive 15% higher then had been estimated, this would mean that they are envisaging that Facebook will almost double its profits within a year.
Inside Facebook is considered an extremely reliable and methodically accurate source for data regarding the inner workings of the company’s business; they suggest that if Facebook continues to make crucial moves in the market they will remain on course to double their profits every year, a remarkable achievement considering the company’s humble beginnings.
It is often questioned how exactly Facebook makes its money being a free service and all (despite the constant pranks suggesting it will soon become subscription based), the answer is in the advertising. With over 400 million users on Facebook there is a lot of room for brand advertising. With so many people prepared to give up every snippet of information about themselves it is easy to target specific users.
On top of this Inside Facebook have suggested that the biggest and most profitable part of the company’s market is in its ‘performance advertising’ referring to the companies that deploy ads within Facebook in order to promote their own ‘developed for Facebook’ products, like the popular online game Farmville for example.
Despite often being saddled with controversy the future looks bright for Facebook as the company shows no signs of slowing in its progress.
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