Facebook has 350 million users so why does it stuggle to make money?

Facebook has more users than the population of the USA Wow! With that kind of traffic and usage it’s hard to think that Facebook will ever drop off the web or struggles to make any kind of real money from advertising. The latter does apply to Facebook it struggles to make as much money as it should considering it’s the second most used website in the entire world according to the Facebook Alexa rank.

There are websites being used right now that has a tenth of Facebooks traffic and makes more than they do so wheres the glitch? It’s considered that the type of niche that Facebook sits in is one that has always found it hard to make as much as other sites do in other niches this is because the users of social networking sites are focused on usage and not advertising or searching for something on facebook that’s not related to facebook which will direct them off site via and advertisement. Consider this how many people do you think find Facebook via a search engine looking for “frosted glass windows” the key term that users use search engines to get to Facebook is “Facebook” once their their they will be primarily focused on usage and learn to ignore the irrelevant ads. The other option that I think Facebook will introduce in time or should is video advertisements, I think these have more impact that image ads more and more people are using the internet now than ever and most do not even bother watching Television anymore so in time video advertising will be prominent on all websites as an advertising medium.

We have tried and tested Facebooks advertising platform to no avail its very hard to target your advertising campaign to the type off traffic your requiring so we gave up.

This entry was posted on Sunday, December 6th, 2009 at 11:09 am and is filed under Facebook Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.