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people pay big bucks to advertise on facebook. more than just cents per click. big lump sums just to get your add up there, featured in front of 800MILLLLLION faces. If even 1% look at it you are talking about 8 Million people. that is more exposure than almost any other media outlet.
And Sandman, I don't think that in your example, 800M x 1 click x .05 = 40M is how it works. Here is how I view the reality probably is:
Of the 800M users, lets say 20% are "daily users." thats 160M. and lets say of those, 1/2 of them are heavy users. So you have 80M people that are on facebook, on and off, all day. If each one of these people makes 10 clicks per day at $0.01 per click, you are talking about $8M per day of clicked revenue, or $2.9B.
And that is just clicked revenue. Then they have people paying them big money to place adds. Lump sums + clicks. They have people buying data & lists. They made 500M last year selling these stupid 'items' inside their games. Stupid to you and me, but dumb kids are forking it over. And I would assume that with all this money they are re-investing to try to find even more ways to diversify their revenue streams.
Like it or not, the money is there. Will it last for ever? Who knows. Technology trends move SO FAST, if you don't move with it, you are toast. Look at Blackberry. But as we stand today there is no more effective way to reach more people than facebook. not TV, not Print, nothing.
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