A report from Bloomberg states that, Facebook could reach a revenue of $2 billion through 2010, while this figure was just below a billion in the previous year. The interesting but unsurprising thing is, a large portion of this revenue has come from advertising and virtual currency. In all senses throughout the year, these two segments have undergone phenomenal growth.
Facebook has become the best place for established brands and small businesses to showcase their products and services. This is because of the nearly 600 million users who have made Facebook their port to online communication. When it comes to online ad dollars, Facebook almost seems fit in Google’s shoes! That’s true, the two web giants are quite close to each other in this respect. If sources are right, then display ads on Facebook are about to become 1 trillion from 50 billion.
A very interesting thing is, they are taking full advantage of being a social networking site. Their income from virtual currency seems to depend on their users. The major attraction of Facebook is the gamut of applications which it is home to, one of which is games. Some of these games let users purchse items using Facebook Credits — a virtual currency to buy virtual goods on Facebook. Whenever a user utilizes Facebook Credits, the social network, take a percentage of it — 30 cents for every dollar used.
The battle between Facebook and Google is being taken to an all new level — Local. Both Facebook and Google are now looking at a new revenue model which is local advertising and marketing. Facebook is betting on this with Facebook Places, its check-in service and Deals, an app on the Facebook iPhone app which allows users to find the best deals around him. Google is also pushing pedal with Google Places, Google Hotpot and the new NFC Technology which has been launched on the new Nexus S.
With advertisers getting a chance to target its ads using Facebook and also find social network a better platform to promote bits products and services, this number is expected to soar higher. Beware Google, Facebook just started their show!