Tomahawk, WI 11/05/2013 (BasicsMedia) –  Facebook Inc (NASDAQ:FB) has seen the revenues it earns from each customer or active user rise quite substantially in the recent days. There is no doubt that FB earns more from its active users than any other social media site. The only challenge has been for FB to look for ways of increasing the amount of money it earns from its active users. The two sites it competes against are LinkedIn and Twitter, which launches its IPO on November 6, 2012. All these social media sites earn their revenues from advertisements, and they are doing quite well in this regard.

FB Shows It Cares for Advertisers

FB has introduced new friendly systems for those willing to post advertisements on its social media platform. The new features are designed to make it much easier for advertisers to enjoy a much simpler process, which guarantees them the results they desire. FB provides advertisers with a perfect platform through which they can increase brand awareness. The new features are quite effective in helping FB enjoy better return on investment, thus making it more attractive to investors. Its valuation benefits a great deal because of the new features as well.

FB cannot afford to lose the plot where revenue from advertisements is concerned. The challenge for social media sites is to find ways of integrating the new features on mobile gadgets. Use of mobile gadgets to access social media sites has increased exponentially in the last few months. This has eaten into the money social media sites such as Facebook were assured of earning in revenue from PC advertisements. If the new friendly advertiser features help to improve FB’s revenue from mobile ad sales, then I believe that the company should develop more of such.

FB’s Performance Linked to that of Brands and Marketers

FB owes its existence and financial performance on whether it provides brands and marketers with better return on investment. I believe that marketers and brands have seen firsthand how their ads on FB have affected them in recent days. Now as advertisers look for ways of reducing their investments on PC sales and shift more towards mobile ads, FB owes it to them to continue on the same path. Thus far, FB has increased its profit margins predominantly because of its positive effect on brands and marketers that it has helped to get more recognition and sales.

CPC and CPM are two features that FB uses to encourage marketers and brands to increase their investments. These two features have been very beneficial to marketers all over the world, and FB has enjoyed better returns from the same. CPM appears to be more productive and of greater benefit to marketers to a point that they are shifting their investments from CPC to this one. Brands believe that CPM is more economical and it gives them better returns by spending less compared to CPC. FB must find ways of encouraging their interest in CPM going forward.

I am glad to see that FB continues to fight very hard to provide its clients with better services and increased return on investment.

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