This Is How Facebook Tried to Make Money Off You

http://mashable.com/2012/12/21/facebook-makes-money-off-you/

12/21/12

For better or worse, this will go down as the year that Facebook really put a dollar sign in front of its users.

Facebook has been under immense pressure from investors to come up with ways to monetize, which has led to a fundamental shift in how it operates. When the company first filed to go public in February, CEO Mark Zuckerberg stated very clearly that profit is not his or the company's first priority. "Simply put: we don’t build services to make money; we make money to build better services," he wrote in the public filing. Eight months and plenty of bad stock trading days later, Zuckerberg revealed in an earnings call that every team at Facebook is now responsible for coming up with a revenue strategy for their product.

In the past year, we've seen Facebook try out a range of tactics to make money from its users, whether it's inserting more advertising into the News Feed or the recently announced option that lets people you don't know message your inbox for $1. Some of these efforts, like the messaging option, have been met with heavy criticism from users while others have largely been accepted as par for the course.

What matters now to Facebook from an investor standpoint is how much it can increase the money it makes from each user. Facebook generated about $1.25 per user on average in the third quarter, up from about $1.19 in the same quarter last year.

To put that another way, right now you're worth about $5 a year to Facebook and the company would really like to see that number go up.

For that reason, don't hold your breath for Facebook to stop trying out new ways to make money off you in the new year. Brian Wieser, senior research analyst at Pivotal Research Group, says that some features introduced this year like Sponsored Stories for mobile will likely stick around, while the company continues to test out others to see what works and what doesn't.

"I think you should expect just an ongoing testing and learning from an ad sales perspective about what balances near-term revenue growth with durability," Wieser said. With that in mind, here's a look back at all the ways Facebook tried to make money from you this year, as well as a glimpse at what they might do next year.