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Tuesday, February 7, 2012

User Engagement: #Facebook's #$100Billion Competitive Advantage @businessinsider @acocotas

Facebook's rumored 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.
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