User Engagement: Facebook's $100 Billion Competitive Advantage

Facebook’s rumoured IPO range of $75 to $100 billion has already set off waves of argument, although we won’t know the official valuation for months. Nonetheless, there is compelling evidence to justify even that sky-high valuation, as BII analyst Pascal Emmanuel-Gobry recently wrote

Here’s one more reason: Facebook has continued to increase user engagement. As the chart of the day shows, Facebook users spend on average two more hours a month on the site than they did only a year ago. Overall, the average visitor to Facebook spends about two more hours a month on its site than the average visitor to the Google Sites (including Gmail, Google Maps, etc).

In other words, that is time spent absorbed in Facebook’s platform, looking at Facebook ads, and adding the content that powers Facebook’s formidable data profile of you that in turn allows it to sell those ads for more money.    

Average Time Spent: Facebook vs. Google Sites

Photo: Business Insider Intelligence

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