Eight-Five Percent of Facebook’s Revenue Was From Ads In 2011
SplatF.com has put together a useful chart that displays Facebook’s revenue break-down from the past 3 years. While we already know that Facebook generates most of their revenue from advertising, what we did not know was how much they have diversified. In 2011, Facebook revealed in their IPO filing that 85% of their ad revenue was from advertising and 15% was from payments and other fees.
This means that Facebook is more diversified than Google. Currently Google makes 96% of their revenue from advertising. This is close to Facebook’s revenue break-down in 2010 when they made 95% of their revenue from ads.
Zynga is driving Facebook’s payment business and diversification from advertising. About 12% of Facebook’s revenue in 2011 was from Zynga, which included revenue for processing payments.
Netflix bought $3.8 million worth of ads from Facebook last year which is 0.1% of their total ad revenue. And the Washington Post bought $4.2 million worth of ads from Facebook last year, which also amounts to about 0.1% of the company’s total revenue.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry