Last week, Facebook (NASDAQ: FB) announced their plans to sell out. Literally. If you look at Facebook's numbers, you see that advertising is the greatest source of revenue, 1.6 Billion/1.82 billion (88%), which could change the tune of technology sector's newest superstar. Television style advertisements are set for implementation soon next week in an attempt to mock that of Youtube. The ads will command 2.5M each for 15 seconds and will be selective of users according to demographic research.
News that the magnate will advertise on 'news feeds' is met with mixed reviews. Will the company prosper or will users be jaded? Will the company lose it's accessibility brought by years of providing easy interfacing? Google was started in 1998 and it saw its first profits after 7 years. 2013 is Facebook's 9 year anniversary (Feb 2004). Google to this day records advertising receipts about 97% of the gross and soon plans to market fiber optics (read: sell data bundles) and floating wi-fi in developing countries to grow the bottom line.
Instagram is also a subsidiary of Facebook ($0.7B in April 2012) and plans are still working out. Last month, 40 Million unique users were on Instagram, which was created late in 2010. Twitter, Yelp, LinkedIn, and Google are Facebook's competitors in the mobile networking industry, and plans may also include partnership with Twitter. The partnerships will reign in a new era as facebook transitions from a universal need to custom fitting apps to phone models and particular demographics.
In June Zuckerberg met with THE HEAD of Samsung in an effort to install the FB app on newly sold devices. Currently, only the HTC First comes pre-packaged. From CEO of Instagram Kevin Systrom: "If [Facebook] keeps growing at this rate, it will be the biggest thing in the world."
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