Out of 1 billion users 680 million people are connect with Facebook through their mobile phones. Also Facebook app is the second most used application just behind that of Google Maps. So let’s take a look on how Facebook loses its revenue by mobile users?
Facebook hits 1 billion user record on 4th October 2012. It is the first ever social networking site to hold this record. According to Facebook more than 680 million users are used their mobile to connect with their friends. All cellphone manufactures provides deep integration of Facebook through their handset. It became a common application in every mobile independent of the platform.
How Facebook loses its revenue by mobile users?
The portability of Smartphone helps to use the services at anytime at anywhere. In the case of Facebook it can even access through features phones. It is easy for anyone to get a data plan for cellular connection and easy t connect with FB, more convenient than accessing via PCs. Also the Facebook app for major mobile platform do well as that of desktop. But in that way Facebook heads loses the ad revenue.
Advertisement is the most effective tool that became the major part of revenue made by Facebook. It makes ad revenue of $1.54 billion in a year. According to the reports more than 80% of total revenue comes from advertisements. Google stands on the top most position in ad revenue holders. They make more than $7 billion in a year. The Facebook site really focused for advertisement they wins over it through the FB addiction of people.
When the number of mobile visitor of Facebook increased rapidly the developers losses the ad revenue in major part. It was because Facebook mobile application doesn’t provide as much ads that of the official site do. As more than half of the entire members get into Facebook through their mobiles there is no chance to get a single click on ads. Thereby Facebook losses its revenue continuously.
Other than advertisement Facebook also makes money through virtual goods. That is the site provides a system to send virtual gifts to your friends. The average cost of such transfer is $1. As the service became popular in short time Facebook allows third party developers to provides variety of products. Now it is became a trend in Facebook to send virtual gifts to the friends. Last year Facebook made more than $150 million in cash from virtual gift service.
Facebook also makes money from applications which integrate its credit. Other than applications the large social games like Farmville rapidly increases the revenue of Facebook. The third party application developer support by Facebook makes it to enrich with effective applications and games. Also the number of purchasing in Facebook increases every day. Facebook also plans to bring up new action games for the sites. As most of everyone is within Facebook the hardcore games will definitely chooses those games.
Facebook also plans to provide mobile ads in their applications. They focused on it because of they are aware about the Smartphone dominance. At the same time Facebook make available effective applications and games for the users. The 1 billion users credit never declines the Facebook’s revenue graph.