Reports on Facebook’s newly announced profitability have focused on a fixed deal with Microsoft that generates a large chunk of their income. But the site’s homegrown revenue sources—self-serve advertising and virtual gifts—shouldn’t be discounted, writes Bobbie Johnson for the Guardian. The personal information on Facebook pages allows for marketers to target users with greater precision than search advertising.
And Facebook’s community can play both roles in the advertising equation—individuals can also buy ads on the site to direct you to profiles and groups for their products or causes. Lastly, don’t count out virtual gifts, as they can support habit forming online games. After all Johnson writes, “nobody ever thought ringtones could be so profitable.”