Facebook's focus on a sustainable business model
Following the release of Facebook's latest quarterly results, Andrew Yates, chief executive officer and co-founder of social CRM provider Artesian Solutions, says the digital industry is shifting fast and Facebook's results reflect the transformation that is happening as budgets quickly move to the online power channels.
He adds: "Facebook's revenues are still dwarfed by dot com giants, such as Amazon and Google, but it's only just started to scratch the surface of the revenue opportunities it holds.
"Moving forwards, I anticipate that Facebook will continue to monetise its services by developing new offerings that provide dynamic content based on users data. Whilst it will still take some time, the company will eventually trade above its IPO listing price and serve as a benchmark of progress for digital advertising, mobile and social."
Following its initial lofty valuation, Facebook's focus has been on investing in a sustainable business model anchored around mobile and search. With more people accessing Facebook from mobile devices, the company is successfully convincing investors of its potential to generate large revenues by using mobile to influence the masses.