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Facebook’s revenue primarily driven by adverts and you!

Last Updated: Wednesday, September 5, 2012 - 19:21

London: Facebook’s shares maybe at an all-time low on the New York Stock Exchange (NYSE), but the social networking site’s primary interest lies in increasing the number of friends and apps a user has on the website, as it draws most of its revenue from advertisers and users who sign up for the social site.

Facebook reportedly earns an average of 5.90 dollars a year for everyone who signs up for the site.

The firm’s value is not just in the adverts that one clicks on the site, but also makes money through a the number of friends a user has, whom he/she can recommend products and services and the number of apps he/she has signed up for.

Facebook users may have noticed lately that people with fewer than 30 friends are being recommended to them as an addition to their friend list, as people with more than 30 friends are more likely to be active users, and Facebook wants all its users to be active, logging in at least once a week, reports.

Facebook has also smartly and cleverly changed its app sign-up screen, which previously used to show a user in large print exactly as to what permissions they were granting while signing up for the app such as whether it would post to their wall on their behalf or they could simply click ''no thanks!'' if that was undesired.

Now, that information has been moved to the bottom of the sign-up screen, in fine print and grey font, and the options for not signing up for an app been made far more confusing and complicated for a user to understand.

Despite the plummeting stock prices, Facebook has left no stone unturned to garner more users for its social site along with new apps in the App Centre and adverts, which surely would ensure the firm’s smooth sail in tough waters for a long time to come.


First Published: Wednesday, September 5, 2012 - 19:21
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