More investments from numerous investors in social games across its platform, hungry to buy more of its shares and an ever increasing user-base, Facebook has more than just a bright future. According to current estimates, the social network might very well be making more than $1 Billion in revenues. Quite a jump, even for estimates, given that only recently those were put to be around $700 Million.
Those figures however sound quite possible as the social network would eventually cross over 500 million users and given its very recent growth, that is pretty achievable. Plus it has got so many reforms coming to it, from pushing out Facebook Credits as an effective virtual currency and ever more addictive ways to have users flock to using them (thanks to virtual gifts and social games from Zynga). Now I am not rushing ahead to say that Facebook will actually be cooking that much in revenue next year, but if it were to actually integrate the Credit within its platform as its default virtual currency it might very easily churn out half of the estimated revenue for 2010.
If this is actually to turn out true, Facebook might actually find it much easier to generate quite a fortune from the platform and win the trust of investors and actually get that IPO it has been targeting for quite some time. To be honest the virtual goods holds the key to how and what revenue the social network generates through the offerings on the platform. Then there is the huge advertisers market which is ready to do anything to tap the resources and more importantly the huge population of the network to place their ads on. I mean we saw it with Southwest Airlines giving away 100 tickets to its fans on the social network. That is just one example, the bait here is how effective the platform is at targeting the right audience with the right ads/promotions,because users are spending so much time on the social network and sharing so much across it that it makes surveys more useful for the marketers.
Other than that the social network’s features like self service display ads and custom campaigns are already charged slightly higher than other social networks. The custom campaigns themselves according to some stats are charged at $20 CPM, quite higher than what others do. But then everyone knows that if it’s charging you more it is also giving you a higher probability of more clicks coming in your way. I personally think that with more growth awaiting Facebook in the future, the revenue predictions may alter over time and present predictions will be proven wrong.
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