Greenlight: Facebook can make more money by offering to remove ads, for a price

By IVCPOST Staff Reporter

Jul 30, 2013 06:18 AM EDT

Greenlight conducted a study recently that showed Facebook could earn more by accepting a monthly payment to remove ads from its users' Newsfeeds. The Greenlight study polled 500 people worldwide. The aim of the study was to know how willing the respondents would be to pay Facebook to remove the ads from their Newsfeeds. Fifteen percent said they'd be willing to pay a monthly fee. Eight percent said they were willing to pay as much as US$10 per month for this.

Twitter's Biz Stone prompted the study. Biz Stone suggested that Facebook could charge 10% of its 1.1 billion users US$10 a month for an ad-free site experience. This would result in US$12 billion per year, which was three times more than what the site earned from ad revenues last year.

From almost nothing, Facebook's mobile ad revenue comprised 30% of total ad revenue last quarter and 41% this recent quarter. It reported a 53.1% gain on revenue to US$1.8 billion. Meanwhile, adjusted earnings per share was US$0.19, an increase of 58.3%. Both results exceeded analyst expectations and resulted in revenue of about US$1.6 billion and EPS at US$0.14.

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