Northern, WI 03/24/2014 (usastockreport) – Facebook Inc (NASDAQ:FB) is enjoying a dramatic increase in advertising revenues and signals point out that they are not about to dry up anytime soon. However, the company is also proactively seeking new streams of revenues.
The social media revenue mix:
Social networking platforms like Facebook Inc (NASDAQ:FB) have to depend very heavily on advertising revenues. There are other ways of making money like subscriptions and payment charges but at the end of the day, the amount remains insignificant. Facebook has seen advertising revenues rise by an impressive 76% y-on-y basis in 2013. They now contribute $7 billion to the company’s coffers. The company has also managed the transition to the mobile platform very smoothly. This aspect is very important as the mobile advertisement market is expected to grow by 75% in 2014. The launch of video advertisement is also a big plus as the company can continue to lead the competitors. Facebook leads the competitors in almost all the segments; it has a strong user base, its revenue model is well accepted and most important, it is showing healthy growth in all avenues.
Room for growth:
In spite of all this, Facebook Inc (NASDAQ:FB) does not believe in taking things slowly. It is still searching for new avenues to make money. There are limited options for social networking sites. One of the streams being looked at are the gaming zones. Games have always been big business for Facebook. It derived 12% of its revenues from this segment. Recent studies have shown that Facebook users spend a lot of their time on the gaming zone. Not only are more people being attracted, they are also spending more time. This makes it an ideal choice for advertising professionals. Though revenues from this segment are still a very small percentage of the total revenues, they are expected to increase in the future.