Sponsorships on networking site Facebook rack up some nice revenue for Mark Zuckerberg and company, but perhaps not quite enough to justify valuing it in the $8 billion range.
Rumor: Facebook Makes $90 Million Per Year
The always-entertaining Valleywag unearthed some numbers on Facebook, courtesy of an unidentified tipster.
When blog editor Owen Thomas asked the company about the rate card, date February of this year, he received some interesting answers:
At first, Facebook spokesperson Brandee Barker says, “We don’t have a rate card.” When I informed her that the document I had was labeled “Rate Card / Snapshot of Integrated Opportunities,” she backtracked and said, “I just don’t think it’s a rate card in the traditional sense.” Of course. Only in the sense that it lists advertising rates.
Advertisers on Facebook have the opportunity to buy into Homepage Sponsored Stories or Sponsored Groups. Facebook requests a minimum spend of $50,000 for the Homepage choice, $150,000 for a Sponsored Group.
Thomas also worked in a shot at Microsoft for ponying up for Facebook’s banner ad business:
Banner ads, clearly, don’t count for much on Facebook; even Facebook admits as much to advertisers, which is why the company has pawned off its banner-ad inventory to Microsoft. (Microsoft, like a sucker, took the deal, which goes to the credit of Facebook’s shark-like dealmarkers.)
The real advertising money is in sponsorships. Valley insiders knew that all along; they just didn’t know how much until now. Do the math, and at Facebook’s current sponsor count, just the $150,000 minimum spend could reach $90 million a year.
Facebook’s recent moves point at a possible IPO. They seem to be laying the groundwork to make this happen, but that’s still speculation.
