Why Facebook Is a Fantastic Business and an Even Better Investment
Facebook's (NASDAQ: FB) share of the social-media ad revenue market is evidence of an extraordinary business franchise.
Calculated by dividing a network's ad revenue by total social-network ad spending, social-networking ad revenue market share tells investors just how desirable a platform is to marketers. Facebook's share of this key industry metric, currently estimated to be 78.7%, is staggering -- the best example of just how much power Zuckerberg and company wield.
Ad spending is competitive in social media. Facebook's consistent ability to capture over three-quarters of all social-network ad spending, therefore, speaks to its near-monopoly position:
Source: Fool.com