Tomahawk, WI 8/19/2013 (Basicsmedia) – People focus more on Facebook Inc (NASDAQ:FB) as a social media network, and forget about the company as a provider of different products meant to satisfy the needs of advertisers, developers and users alike. FB has made it possible for developers to come up with different applications which its users can enjoy working with globally. It is some of these apps, and some of them allow websites to be integrated with FB, which make this company such an attractive investment option.

The fact that FB has more than 900 million users, who are active every month, means that it is a great platform for advertisers to market their products worldwide.

Can FB Be More Profitable?

Two camps emerge whenever people are talking about FB. One camp believes that this is a company which has the potential to be one of the largest and most profitable in the world. The other camp is yet to be fully convinced of this company’s potential and certain that it is overrated. The only way of resolving this conflict and debate is to look at FB’s financial results ever since it went public. But if you take time off to look at this company objectively, you will notice that there are a couple of things it has working in its favor to make it more profitable.



What Are The Foundations of FB’s Present and Future Profits?

The first thing which works in FB’s favor is the presence of more than a million active advertisers. This is the one aspect of FB which attracts revenue and profits to the company more than any other. The fact that most of these advertisers are local is an added advantage, and means that FB has a loyal base to rely on for increased revenue and profits. Facebook has opted to make it easier for advertisers to market their wares both through desktop and on mobile gadgets. The huge number of mobile devices people use to gain access to FB cannot be ignored.

The second thing, which works in the favor of FB, and can be used to increase its profits, is the more than $1.81 billion it gets as revenue every year. The financial results for 2012 indicate that FB received close to $1.6 billion of its total revenue only from advertisements. This shows just how important advertisers and advertisements are to Facebook as a company. There has been an increase of around 61% in revenue from advertisements, compared to what was reported last year. FB obtained the remainder of its $1.81 billion revenue from payment, especially gaming.

What May Affect FB’s Profits and Revenue?

A few things can always arise which have the capacity to dent the work which FB has been able to achieve thus far. The likelihood of new companies offering services which are similar to FB’s, and are perhaps more popular than it, is always real. The world is never stagnant and just when you think we can’t get a better product than what is already in the market, you will get surprised to see a new entrant taking the world by storm. However, FB can keep on taking pride in its huge resources and continue making profits, and attracting revenue which pleases its shareholders.

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