Facebook's $1 Billion Revenues Explained In 25 Words

 

[image url="http://static.businessinsider.com/image/4acb97ac0000000000a79cac/image.jpg" link="lightbox" caption="" source="" alt="" align="left" size="xlarge" nocrop="true" clear="true"]
Facebook revenues have reached a $1 billion annual run-rate, sources tell TBI Research.

We asked around and figured out how that finally happened.

To our delight the reason is so simple, we can explain it in 25 words:

  • Facebook’s scale makes a Facebook Page the best landing page for brands advertising on the Internet.
  • Facebook ads are the best at driving traffic to Facebook Pages.

OK, you caught us. That was 27 words.

Bonus analysis: The reason Google wanted to buy Yelp for $550 million is very similar.

  • A Yelp page is the best place for a small businesses to make its home on the Internet. This is because a Yelp Page appears objective, but Yelp allows the small business choose a review to feature at the top of the page.
  • Google search ads would be very good at driving traffic to Yelp Pages.

So, what is it like working at Facebook?

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.