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Interestingly, I think there may be a point beyond which Facebook begins to lose revenue as users spend more time on their site. Think about it - their revenue
by wallacoloo 10y ago
Interestingly, I think there may be a point beyond which Facebook begins to lose revenue as users spend more time on their site.
Think about it - their revenue comes from turn-over. They don't make money because you spend time on facebook - they make money because you spend time/money elsewhere, and they know enough about you to encourage you to spend more money on other people's products or otherwise sell their knowledge of you to people who can make those sales.
At some point wherein Facebook occupies an exceptional amount of a user's time - when it becomes the only product a user wants - Facebook won't be able to sell you anything. At this point, the company would probably need to find other ways to profit besides advertising. But I don't think we'll ever get anywhere near the point at which an increase in FB use time corresponds to a decrease in advertiser value anyway.
- intrasight 10y agoyou are neglecting in-app purchases
- newjersey 10y agoAt some point, time spent on Facebook will start competing against time spent playing candy crush saga.