Sie sind auf Seite 1von 4

Facebook reported on their 4Q12 earnings call that \$5M of revenue was generated from the combination of Promoted Posts and Gifts, with the majority from PP [1]. By finding the revenue generated by PP, we can back out the performance of Gifts.

## 1. Promoted Posts (PP) generated an estimated minimum of \$4M of revenue in 4Q12

A minimum of 200K pages used PP in 4Q12 o 500K used PP by the end of Q4 [2] o 300K used PP by the end of Q3 [3] o 500K - 300K = 200K new Pages using PP in Q4 The minimum price to promote a post is \$5 The average page who uses PP does so 4x per quarter o As of 12/6, 300,000 Pages had promoted 2.5M posts [4], or an average of 8.33 per Page o PP launched on 5/31/12 [5] o Between PP launch and the announcement of that stat on 12/6, 189 days had passed, or 2.07 quarters o 8.33 PP per Page using the feature / 2.06 quarters = 4.04 avg PP/quarter/Page who uses it 200K Pages * 4 posts per Page * \$5 per post = \$4M minimum revenue from PP in Q4

If 17% of PP customers from Q3 used PP in Q4, Facebook made \$0 from Gifts o 50K / 300K = 17% o 200K new PP users in Q4 + 50K returning = 250K Pages o 250K Pages * 4 posts per Page * \$5 per post = \$5M revenue from PP in Q4 We estimate that repeat use of PP is towards the higher end of that cap, since 70% of promoted posts are purchased by repeat customers [10] (note: this figure may refer to customers of any type of Facebook advertising, given the language/context in the source)