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Facebook's quest to grow revenues apace with membership

How will Facebook continue to grow revenue going forward?

Gartner analyst Andrew Walls said advertising may be eclipsed by applications that run on the social networking platform. Down the road, Farmville and other applications will flourish, he said, and Facebook will benefit from its slice of proceeds that come from them.

Salesforce.com, for example, began as a cloud-based provider of software that allows businesses to interact more efficiently with customers. But it soon became a platform for other applications for the business market.

"There is great potential in third-party applications," he said.

Harvard Business School professor Ben Edelman said Facebook will continue to test user's comfort levels on how much information they want to share with others on the Web, including publishers.

"We've reached a tipping point where Facebook has become the defacto social platform and there really isn't an alternative," he said. That gives the site a powerful position to experiment with user information, in ways that its members may not like down the road.

Those were some thoughts of experts on Facebook's push to earn money as quickly as it grows its user base.

Here is an excerpt from the story that ran in the paper Saturday:

By Cecilia Kang

Facebook may be growing like gangbusters, but the question clouding the storybook rise of Silicon Valley's latest phenomenon is whether it can figure out how to make money at the same pace.

And although the social-networking site gets a daily flood of new users around the globe, Facebook's long-term success might be challenged by something at the heart of its core business: sharing information.

The site, which passed 500 million users this week, says it's generating enough revenue from advertising to cover its costs. The company is privately held but has its sights on going public one day. It doesn't charge its users, and chief executive Mark Zuckerberg said this week on ABC News that it never will. (Washington Post Co. Chairman Donald E. Graham sits on Facebook's board of directors).

Facebook's lifeblood is the exchange of information -- people making more online friends and trading more pictures, news stories, music and one-line mood updates -- which also happens to be sheer gold for advertisers. Experts say the company treads a delicate line in getting its users to share more information without alienating them through overexposure.

Read here for full story,

By Cecilia Kang  |  July 26, 2010; 8:00 AM ET
Categories:  Facebook , Privacy  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Wireless group sues San Francisco over cellphone ordinance
Next: E.U. launches antitrust investigations into IBM

Comments

Remember that Twilight Zone episode "To Serve Man" about the Kanamits? Mark Zuckerberg and Facebook are the real Kanamits.

Yes, Zuckerberg is a wannabe Bill Gates with designs on a monopoly in social networking, which would result in a new Dark Ages like Gates did with operating systems, and his whats-in-it-for-me practices trampling personal and privacy rights to position himself for riches no matter whom he hurts are despicable, and are indicative of much worse to come, which is one reason he must be stopped. But it's far worse than it appears on the surface, because all the signals are there that he wants to rule the world as the Antichrist, for instance, keeping the company private and wanting everybody to give up their privacy to him and him alone, like in Revelation 3:16 where it says he will put his mark on everybody's forehead and no one will be able to buy or sell without the Mark of the Beast, Mark Zuckerberg. Forget the old theories that Bill Gates was the Antichrist, this could be the dude. Gates just kept holding you back with horrible buggy software, but Zuckerberg can get you where you live by owning and using your private data at will. If you could go back to the early 1980s and buy Microsoft's competitors' operating systems, wouldn't you, to stop Gates? Well wake up and stop the Beast, or you will live to rue these happy days when you failed to act. The only way to stop Zuckerberg cold is to boycott Facebook by deleting your account after telling your social network to do ditto, in hopes that a saner, safer, more democratic alternative will arise that connects everybody with proper safeguards against monomaniac people and groups.

Learn more:

http://boycottfacebookblog.blogspot.com/

Posted by: tlwinslow | July 26, 2010 2:56 PM | Report abuse

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