Giant social networking site Facebook displays various sponsored ads in users’ News Feeds which most of the time have nothing to do with user interests and the pages the users like, but it has benefited the Facebook. How? Well Facebook now makes a big amount from News Feed ads. Any guess, what the amount could be? It’s only $4M per day from News Feed ads.
At beginning Facebook started offering very few ads on its page. But when Facebook realized that the number of Facebook users are getting increased everyday, it decided to provide more ads in News Feed. And guess what? Now with the one billion active user, Facebook is making $4M per day from News Feed ads. Facebook’s chief source of revenue is the ads it features on its pages. Marketers are charged based on the clicks they get on the ads from Facebook users. Around 75% of that revenue comes from ads running in the mobile News Feed. Facebook revealed these information October 23, Tuesday. And the most interesting thing is Facebook has increased the amount of revenue it generates each day from News Feed advertisements after last quarter.
Facebook had 1.01 billion monthly active users and 604 million monthly mobile active users in its third quarter. However, Facebook’s total revenue in the third quarter of this year was $1.262 billion. Of that amount, advertising revenue was $1.09 billion. Now as Facebook is making $4M per day from News Feed ads so the company is trying to make its feed ads better, more relevant, and of higher value.
Source : Venturebeat