facebook....I still don't see how they make THAT much money

[JohnnyD]

To those saying they don't see how Facebook can be so valuable or why advertisers would pay money to advertise on there... there are entire industries that revolve around buying ad-space on Facebook in order to generate leads for selling a product. I know two people in particular that have a team of people advertising products on Facebook. One of them told me that he spends upwards of $2000/day in FB advertising.

Then tack on companies that make games on Facebook and pay royalties. Zynga is an online gaming company that was basically created to design games and generate revenue through FB. They now have a few thousand employees and are traded on NASDAQ.

Facebook is now an industry in and of itself.

How do you guys think Google got so big? It is 100% thanks to their advertising model.

[BigBo]

Talk about sickening. This makes me want to puke.

Bono Facebook IPO Shares: Will U2 Frontman Pay Tax on Facebook IPO Windfall? - International Business Times

[JohnR]

Originally Posted by JohnnyD

To those saying they don't see how Facebook can be so valuable or why advertisers would pay money to advertise on there... there are entire industries that revolve around buying ad-space on Facebook in order to generate leads for selling a product. I know two people in particular that have a team of people advertising products on Facebook. One of them told me that he spends upwards of $2000/day in FB advertising.

Then tack on companies that make games on Facebook and pay royalties. Zynga is an online gaming company that was basically created to design games and generate revenue through FB. They now have a few thousand employees and are traded on NASDAQ.

Facebook is now an industry in and of itself.

How do you guys think Google got so big? It is 100% thanks to their advertising model.

I understand that - but they are not Google

[JohnnyD]

Originally Posted by JohnR

I understand that - but they are not Google

You're right. But after the IPO, they'll probably be immediately within 10-20% of Google in terms of valuation.

Facebook has something that Google does not - voluntary, detailed demographics of 800 million users. Facebook gives advertisers an ability to segment and target their valued demographic with a sniper's precision.

Advertising dollars are all based on target demographic. That's why there are beer commercials during sports games and commercials for Tampax during Oprah.