Tomahawk, WI 11/01/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) has to work hard to make its turnaround complete. The company, just like all other tech firms, relies largely on revenue from ad sales. However, this has been dropping for quite some time. The reason money from ad sales is on a slump is because people opt to access Facebook accounts through mobile gadgets and not PCs. It is a well-known fact that revenue from PC ad sales is much higher than mobile devices. Worse still is the fact that the company enjoys the sort of business value that it should be boasting of right now.

Facebook’s performance across the globe is remarkable. A company with a short history in public trading such as FB, and one that faced its worst period financially after going public a year ago has done better than many analysts expected. Moreover, fewer analysts had any faith left with FB. Nevertheless, the company has made an about turn financially. It is on its way towards achieving more success and posting better quarterly financial results. Anyone would be forgiven for saying that FB has done what it could to change the dire situation into one of hope.

FB Focuses on Paid Ads for Increased Revenue

FB has shifted focus on to paid ads. This strategy continues to attract support and opposition in equal measure. Certain investors and industry experts say that FB should not rely heavily on paid ads for revenue collection. Other investors and experts believe that FB is on the right track as long as it does not rely on one tool to turn its fortunes around. When FB first appeared on the scene, it was not designed for paid advertising or any other type of advertisement. This development came on much later once the founders decided to monetize their idea.

The first time Facebook introduced ads on its platforms, it earned a few hundreds of millions of dollars. However, the company now boasts of billions of dollars as revenue from advertisements. Firms all over the world continue to use social media platforms to help their marketing strategies, and FB is the biggest in the industry, boasting of more than 1 billion active users. A year ago, FB made more than $4.3 billion from advertisements alone. By the time FB announces its full year financial results for 2013, its revenue from advertisements will have risen by 31% to $5.6 billion.

Great Potential Exists in Paid Ads

The other reason that empowers FB to continue in its belief in ad sales is the fact that 64% of all advertisers will increase their spending on advertisements, especially where social media is concerned. The market is ripe for FB, but it needs to work on not losing any of its advertisers by giving them value for money. Large and small companies alike need to believe in the longevity of FB. This tech giant needs to demonstrate that its product is the best, and will continue being the best for as long as it takes. If this fails to happen, advertisers will take their money elsewhere.

In the meantime, I believe that FB is justified to focus on increasing its revenue from paid ad sales.

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