
Facebook's Ad Revenue Hit $1.86B for 2010 - domino
http://mashable.com/2011/01/17/facebooks-ad-revenue-hit-1-86b-for-2010/
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iamwil
How is facebook making money from ad revenue? It was touted before that ads on
social networks didn't work well, because users didn't go to facebook to look
for anything, so users didn't click on ads.

But now, they seem to be making money hand over fist. How are the fb ads
different now?

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patio11
_How are the fb ads different now?_

They're for Farmville & company, and the goal is not achieving a transaction
during this session but rather just setting the hook for gameplay. Many who
start will successfully spam their friends (viral factors greater than zero
mean the average CPA to get a new signup is lower than the CPA you paid for
the signup from ads), and a few will become _extraordinarily_ lucrative buyers
of virtual goods that have very high margins.

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jacques_chester
According to some random company's estimate their ad revenue hit $1.6Bn. We
won't know until they go public, if ever.

