Mobile advertising on Facebook is generating huge revenue for Facebook Inc (NASDAQ:FB) beating the analysts’ estimates. Other products of company like Messenger and WhatsApp have 1 billion users but still are not a money generating source for Facebook.
According to the Facebook Inc (FB), more than 2 billion searches are conducted daily on Facebook.com. Company has been adapting new changes to make searching on Facebook more than just finding old links. The new update is intended for live events, trending news and holiday photos.
The new product consists of three stages, on the very first stage, consumers will have habit to use it. On the next stage, networks links between consumers and businesses will be made and on the third stage, businesses will pay Facebook to target more people.
Chief Executive Officer Mark Zuckerberg said “Certainly there’s a reasonable amount of behaviour in there which is looking for things that, over time, could be monetizable or commercial intent, and at some point we will probably want to work on that.”
Moreover, Live video streaming on Facebook Inc is contributing to some extent. Even Facebook is paying some stars to make their videos and is testing initial ideas. But they didn’t sort out how to generate large sum of money from this feature. Sheryl Sandberg, Chief Operating Officer, said, “Right now we’re in the really early stages of working with publishers and content producers to create content for our platform.”
When it comes to WhatsApp and messenger, Facebook Inc (NASDAQ:FB) had the same idea about the business and its phases and are on the edge of being capable to make money. Messenger is experiencing some early testing but the interactions between consumers and businesses is the main focus of Facebook. While WhatsApp is already being used for commercial purposes. But the company didn’t disclose the revenue generating facts from WhatsApp.
For the first time, Facebook is selling Oculus, a virtual reality hardware device, this year. But Oculus also consumed a huge investment from Facebook where 20 percent is spent only on the research and development of the product.
Facebook Inc (NASDAQ:FB) CEO and Founder Zuckerberg said “We filled all of our orders for Oculus Rift and we’re seeing increasing demand from retail as stores plan for the holidays. As of the second quarter, more than 1 million people a month are now using Oculus on mobile phone through our Gear VR partnership with Samsung. More than 300 apps are already available at the Oculus store for Gear VR.”