Facebook Posts Big Profits
Facebook is making waves as stock prices rise and profits thrill investors. The company has posted a growth of 52% just in the last quarter, and 123% growth in profits from 2014 to 2015. The social media company is more successful than ever, and it owes all of its success to its billions of users. So how is Facebook pocketing so much profit?
Much of Facebook’s income comes from ads, especially from the mobile app version of Facebook. In fact, 80% of the company’s revenue comes from these advertisements. Facebook has more users than its ever had, with over 1.59 billion subscribers, and has devised ways to earn money from each individual subscriber.
Facebook has been growing by leaps and bounds lately, due to all types of new features that not only bring in new users but keep existing users on the app for a longer period of time per session, spending even more time and earning more money for the company. New notifications, video profile pictures, and the ability to tailor your notifications so you can avoid your ex are just a few of Facebook’s newer perks.
Facebook also has a stake in the new Oculus Rift device, scheduled to launch this year at some point, which could also prove to be very profitable for the company and its founder, Mark Zuckerberg. Experts say that they can’t predict how profitable Facebook will be from year to year, because there are too many specific factors for its success, including the economy.
However, for now, almost a billion people not only look at Facebook every day, but they do it on a mobile device, which causes ad revenue profits to soar. Since most of Facebook’s mobile ads direct users to new apps, etc, these other companies are reaping the rewards, too. It appears as though Facebook’s growth trajectory continues to be upward, especially since more users have migrated from desktop Facebook to using the mobile app, which may have initially hit some snags but now seems to be the reason for Facebook’s growth and success.
So what is Facebook’s secret to continued growth? Some say that Facebook has become more than just a social media site, but a platform for politics and other relevant issues, connecting users globally and making important changes. Facebook has also hinted at upcoming features that may prove even more successful for the site, including streaming video (similar to YouTube) as well as more ad engagement, updates to the popular Messenger service, and more ways for users to connect with businesses and interact in a positive way.
Do you use Facebook? How do you use the site and do you think the changes are positive ones? We can’t wait to see what Mark Zuckerberg does next.