Thursday, August 27, 2015

Facebook is Building the Commercial Graph | Tech.pinions - Perspective, Insight, Analysis

In other advertising/shopping evolution news...

"Why is Facebook doing all this? Well, it’s both a continuation of and a break from Facebook’s past business models. It’s a continuation in that, essentially, all of Facebook’s revenue today comes from businesses trying to reach end users through the service, almost exclusively through advertising. But it’s a break in that this new model wouldn’t be about advertising per se, but rather about Facebook facilitating transactions with businesses and potentially taking a cut. Even though Facebook’s advertising revenue has grown from a low of 82% of total revenue in 2012 (in Zynga’s heyday – no pun intended) to 95% of revenue today, chances are the company’s revenue base will diversify significantly over the next few years as it continues to pursue these new business models (and others). Facebook has talked about how its model for monetizing Messenger will mimic its model for monetizing the News Feed — it will be centered around businesses paying to reach users. It seems as though Facebook is launching the services that will eventually provide new revenue streams, without necessarily turning on the monetization just yet."
Facebook is Building the Commercial Graph | Tech.pinions - Perspective, Insight, Analysis
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