Tomahawk, WI 01/16/2014 (BasicsMedia) – Facebook Inc (NASDAQ:FB) was getting all its revenues only from advertisements on its site, right. Not entirely correct, ad revenues account for the single biggest chunk of its revenues but the other services, particularly its fee based payment gateway also contributes to some revenues. The payment gateway is used to pay for services or goods whether virtual or real, sold through its site.

Some Interesting Figures:

Facebook does not charge for any subscription fees to the users. It has only two known sources of revenues – advertising and payment and other fees. Out of the $2,016 million generated by Facebook Inc (NASDAQ:FB) in 3Q2013, $1,798 million came through advertising. The balance, currently a small fraction, but still $218 million was generated when users used the payment gateway to pay for purchases, as well as other fees. If we look at the previous quarter, i.e. 2Q2013, out of $1,813 million revenues generated, $1599 million came from advertising while $214 million came from the other services.

The Regional Bias:

The revenues also have a regional bias. Facebook measures the revenues in ARPU (Average Revenue Per User) terms. ARPU is worked out by dividing its total revenues in a specific area by the average number of monthly active users (MAUs) at the beginning and end of a quarter in that region. Now, Facebook also derives its major revenues from the United States, Canada and Europe and also has a larger MAU figure in this region. The total ARPU for the third quarter of 2013 was $1.72, an increase of 33% over the same period in 2012. During the same period, ARPU increased by more than 40% in the above mentioned regions. Though ARPUs were lower in Asia and the rest of the world, these regions contributed the maximum increase in the subscriber base. This also highlights the potential for Facebook to grow in these regions.

The Teenage Bias:

Reports have been highlighted recently about Facebook losing its teen users. Some current reports indicate that Facebook Inc (NASDAQ:FB) may have lost more than 59% of collegians in the last three year period. Teen users have fallen by about 25% in the same period. Where are these youngsters headed? The choice, it seems is Twitter Inc (NYSE:TWTR).  Some reports suggest that they could also be joining Google+, the social media platform being developed by Google Inc (NASDAQ:GOOG).

The trend is worrying as the teen groups can make or break any social media platform, after all they contributed the most in creating the Facebook that we know today.

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