Xing with more profit, Facebook with more advertising
The online networks Facebook and Xing continue to boom. While Facebook is benefiting from increased advertising revenue, the career site Xing was able to multiply its profits in the third quarter thanks to a surge in new members.
Xing recorded a surplus of 2.1 million euros after 340,000 euros in the same period last year, as the Hamburg-based Internet company announced on Tuesday. The number of users rose by almost half a million, bringing the company's membership to more than ten million. Turnover rose by a fifth to 13.8 million euros. Xing primarily earns money from the contributions of its premium members.
In contrast, the US company Facebook, with around 500 million users, relies primarily on income from advertising banners. As the internet giant does not publish any business figures, advertising revenue can only be estimated. According to a new study, however, Facebook can secure a large slice of the advertising pie in the world's largest advertising market, the USA, thanks to its strategy. In America, one in four advertising banners appeared on Facebook in the past quarter, as the internet consulting firm Comscore found out. That was more than its rivals Yahoo, Microsoft, Google and News Corp combined. Rupert Murdoch's media group also owns the music network MySpace. According to analysts, Facebook is not yet able to charge as much for its advertising as its competitors, but is catching up.
In contrast, the US company Facebook, with around 500 million users, relies primarily on income from advertising banners. As the internet giant does not publish any business figures, advertising revenue can only be estimated. According to a new study, however, Facebook can secure a large slice of the advertising pie in the world's largest advertising market, the USA, thanks to its strategy. In America, one in four advertising banners appeared on Facebook in the past quarter, as the internet consulting firm Comscore found out. That was more than its rivals Yahoo, Microsoft, Google and News Corp combined. Rupert Murdoch's media group also owns the music network MySpace. According to analysts, Facebook is not yet able to charge as much for its advertising as its competitors, but is catching up.
