6 New Multibillion Dollar Businesses Facebook Can Bank on
Bangalore: The Facebook IPO was valued at a whopping $ 104 billion. It comes as a surprise for most of us when a company that generates a revenue of $5.8 billion is valued so high. The sole reason for this could be the market’s undying faith in Zuckerberg and company to come up with new ways to monetize the site that has over 900 million users. With Facebook having the attention of an average user for about 8 hours a month they have a deep insight in the psyche of the user which can serve as valuable information for advertisers. Here is a list of six multimillion dollar businesses compiled by VentureBeat, which Facebook can look at to justify its sky high valuation.
Search is one sector dominated by Google. Google’s primary business is search advertising and the company has a mighty good control over this sector. It would be a little stupid to expect Facebook to compete with Google head-on. But as we know Facebook has an upper hand in user information and preferences. A recent survey by comScore found out that an average American Facebook user spends eight hours on the site per month as compared to two hours spent on Google.
Facebook can focus on search terms that can have commercial value, such as clothing or travel. Facebook is uniquely positioned to serve taste-based search terms based on the data it already has on its users. So it is evident that even though the ‘search’ sector is ruled by Google, Facebook still has a huge potential in the sector.