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Report: Facebook Making $34.5M in Virtual Item Sales

Authored by Mark Hefflinger on September 2, 2008 - 1:11pm.
Los Angeles - Online social network is deriving about 10% of its revenue from the sales of virtual items that members can give as gifts to one another, according to an estimate calculated by Lightspeed Venture Partners' Jeremy Liew on the firm's blog.

The company is thought to be selling between $28.5 million and $43.5 million in virtual gifts annually, or an average of $34.5 million -- while total Facebook revenue is estimated at between $300 million and $350 million for 2008.

Liew's study also found that "the vast majority of facebook gifts are bought from the first screen of gifts in the directory -- almost 80% of the total sales come from the group of the first 20 gifts."

 

Related Links:
http://snipurl.com/3me0i (Jeremy Liew blog)

http://news.cnet.com/8301-13846_3-10030354-62.html

Published in DMW Daily, September 2, 2008
tags: Social Networking | Reports | Facebook | Research | Virtual Items | Lightspeed Venture Partners |



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