The Social Media Numbers Game

Written by on July 13, 2013 in Technology - No comments | Print this page

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facebook number statistics

Facebook is truly a social media phenomenon like no other in history. It grosses millions of dollars each quarter and has become a vital source of advertising for any business that wants to make a widespread impact.

Many people are likely to assume that Zuckerburg and his team have a secret formula or a revolutionary business model backing up this social-media empire. In reality, it functions in the same way as the majority of other websites and the social media start-ups that preceded it.

Facebook primarily has advertisers and the magic of research into demographics to thank for its success. Once this research shows what people like about using the site, the powers that be behind the business take these things and run with them.

Where Is the Money Coming From?

The businesses who are investing the most money with Facebook are somewhat surprising, however. The big names such as Google, Verizon, and Ebay do not even crack the top ten when it comes to the number of dollars invested.

Instead, gaming companies such as EA Sports and traditional retail marketers such as Walmart are the ones who are reaching high in the rankings.

Although, among all of the companies investing in Facebook, it is actually the financial services on the site who are seeing the most turn around.

Where Those Friends Are Likely to Live

This business knows who its customers are as well. Caucasian women who are between the ages of 18 and 24 living in North America are the typical Facebook user.

This demographic has the potential to generate some staggering numbers. North America’s population currently hovers around 520 million and rising. These women are not idle users either.

They are responsible for uploading and tagging two times more photo than men on the site. It is the man who occasionally scans the site’s pages merely to look at photos.

Winning the Game

The gaming companies are also doing more than just advertising and creating interactive game platforms that serve to draw people to the site. They are also incorporating revenue-building opportunities into the game play, of which Facebook invariably takes a cut.

These virtual goods earned Facebook a staggering $810 million dollars in 2012, and only $5 million of this revenue was earned in ways other than gaming, revealing the extraordinary amount of influence that this industry has with Facebook.

Source: Great Business Schools: A Guide to the Best Business Programs

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