A Look Inside Facebook’s Numbers
Facebook (NASDAQ:FB) gets most of its revenue from advertising, so its numbers are very important. The social media company has revenues of about $1.5 billion every quarter. Even though Google dominates the online ad market, according o the advertising firm eMarketer, Facebook is doing well.
This year, Facebook received 6.5 percent of all online advertising dollars spent in the U.S., which is a 0.6 percent increase from last year. A lot of Facebook’s ad revenue comes from other we companies, including Groupon and Zynga. Most of the profit comes from ads by financial companies though including American Express.
Recognizing that the developed countries are already pretty saturated, Facebook has stated its interest in widening its market base. The social media company has focused on mobile in what is an attempt to create new users in less developed regions, including parts of Africa, South America, Southeast Asia, and India.
Recently, Facebook reported in its latest earning reports that it had about 189 million “mobile-only monthly active users (MAUs).” This refers to users who only accessed Facebook through mobile devices, indicating that may have been their only Internet access.
Mark Zuckerberg gave his view on targeting individuals in these regions during a quarterly earnings phone call when he said “We want to give everyone in the world the power to share.”
As reported by Venture Beat, women are far more active than men on Facebook. Additionally, Facebook’s most common demographic is North American women between the ages of 18 and 24. That may change though as the company focuses on expanding growth in developing regions.
Although the company earns most of its revenue through advertising, revenue from sale of goods is also increasing. In 2012, 27 million Facebook users spent $810 million on virtual products. These numbers may start changing though as Facebook tries to expand further into developing countries.
Investing Insights: Will A Recent Addition Boost Netflix?