Tomahawk, WI 03/16/2014 (Basicsmedia) – The soaring stock prices of Facebook Inc (NASDAQ:FB) has helped its COO, Sheryl Sandberg become a billionaire recently. Since the messy debut on the NASDAQ, Facebook has recovered smartly its stock price is yet to reach the stratospheric levels of Google Inc (NASDAQ:GOOG) or Apple Inc. (NASDAQ:APPL).

On a growth trajectory

Facebook took the tech world by surprise recently when it agreed to buy WhatsApp for $19 billion. But Facebook is on a growth curve right now and wants to keep the momentum going.

Revenue for FY2013 was $7.87 billion, representing an increase of 55% over FY2012. Revenue for 4Q2013 was $2.59 billion compared to $1.59 billion for 4Q2012. Advertising revenue increased by a whopping 76% to reach $2.34 billion. Income from operations for FY2013 was $2.80 billion. Net income for FY2013 was $1.50 billion. More than one billion Daily Active Users as of December 31, 2013.

Among tech industry titans, Facebook is in the fifth place by market cap. Apple, Google, Microsoft Corporation (NASDAQ:MSFT), and International Business Machines Corp. (NYSE:IBM) are the only companies ahead of Facebook.

How to monetise a billion users

With Facebook’s vast insights about its users based on their Facebook Likes, Shares, and so on, Facebook is in a unique position to do effective targeted advertising. The next phase of evolution of Facebook ads is the introduction of video ads in users’ timelines. Facebook will venture into this in a slow and gingerly fashion so as not to irritate the users.

Facebook expects to earn billions in additional revenue by powering app downloads from Apple’s App Store and Google’s Google Play. This will happen via app ads or mobile app install ads. This refers to app developers paying to advertise their apps on Facebook that link to Apple and Google’s app stores. Why developers might want to advertise on Facebook is because the app stores themselves belonging to Apple and Google are quite bad in helping users find useful apps out of the million apps that exist on each of the app stores.

Facebook, Google, and others are competing to keep the user on their websites for the longest time possible. To this end, Google answers queries related to temperatures or movie timings and a lot else directly on the search results page. Expect Facebook to try and do something along those lines to keep users on the Facebook website.

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