Tuesday, May 3, 2011

The Future of Facebook Funding

From Jennifer Sprouse -

This article in the Huffington Post is about facebook users paying for facebook. Fred Wilson argues that the idea of charging users to pay to use facebook and other social media would never work. Wilson suggests that advertising is the way to go for facebook and other social media to make a profit.
From  Professor Bates -
Other recent stories show that Facebook is coming to dominate online display ad impressions, with comScore saying they account for 25% of the exposures in the last quarter of 2010, with the next highest source of impressions being Yahoo (9.7%) and Microsoft (4.5%).  A Nielsen report suggested that the Facebook users averaged more than 6.5 hours online with Facebook in March, and an eMarketer reported that Facebook overtook Yahoo in grabbing the biggest share of online display revenues, with $2.2 billion (21.6% of all US display ad dollars), and predicting that Facebook reaches $4 billion this year.
So maybe they don't need revenues from users - which would likely drive down use of Facebook, and thus display ad revenues. 
Source: "Facebook Serves 25% of Display Ads" Online Media Daily

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