Facebook - Part 1

FACEBOOK – ANOTHER MEAL ADDED TO OUR DAILY LIFE

Isn’t it true to say that Facebook has become an additional meal in our daily life? As we do breakfast, lunch, dinner and so, now a day is Facebook. Mr. Mark Zuckerberg has made a revolution in the social networking that every one in seven individuals on this planet is on facebook and half of them are addicted to it. Mr. Mark Zukerberg has given the social community a drug and that too for the benefits of the people, which many of the people are looking after. Mr. Zukerberg has touched the most important part in any individual’s life that is the social part of the individual. All the persons want to chat, share their videos, pictures, their reviews, comments and all other things they want to socialize, along of providing all this Mr. Zukerberg has also touched other spheres of  a common man’s life like entertainment, gaming, e-gifts, e-greetings and now even facebook credits and all this too in a simpler and easier manner. This is the main reason for success of facebook and subscription of more than 900 million people by 23^rd April 2012 on facebook. Three main reasons for the biggest success of facebook in terms of popularity are:

1.      Allow People to Socialize themselves to the extreme

2.      Provide facebook in the hands of people i.e. facebook mobile as well as tablet applications. About 40% of the total mass using facebook, accesses facebook on mobile as well as tablets.

3.      Gaming, gaming and gaming. People love to play games on the network beating their friends score, competing with other competitors, etc.

This is the success of facebook in terms of popularity among the population but the real success and growth of a company is measured from its monetary worth in which also facebook is not behind. An eight year old company which is successfully run by a 27 year visionary boy has the total revenue of about $3.7 billion with a net profit of $1 billion. This tells the story of success w.r.t market revenue generated by facebook. The reasons for the such a big turn over in such a short period of time are:

1.      Advertisements: Facebook earns 85% of its revenue share from the display advertisements which is not a small amount. People and companies  pay facebook and posts their advertisements on the facebook.

2.      Gaming: Zynga, a social gaming site which is the most popular site among the social-gaming and is popular because of facebook and the total revenue generated by Zynga is all because of facebook and facebook generates its 12% revenue from Zynga.

3.   Facebook Credits: Facebook credits are giving revenue to facebook but they can be more popular if the facebook credits can be used on the web anywhere on any site for purchasing or by doing online transactions. Mr. Zuckerberg have to work on it and do certain tie-ups with PayPal or so to accept facebook credits and in return exchange those facebook credits from facebook in terms of real cash or something of that kind.