First of all, a big thank you JW, I would not have found http://www.sec.gov/Archives/edgar/data/1326801/000132680116000043/fb-12312015x10k.htm without you directing me to it.
A very interesting read, from the info:
[B]We generate substantially all of our revenue from advertising. The loss of marketers, or reduction in spending by marketers, could seriously harm our business.[/B]
Substantially all of our revenue is currently generated from third parties advertising on Facebook. For 2015, 2014, and 2013, advertising accounted for 95%, 92% and 89%, respectively, of our revenue. In addition, we have recently introduced advertising on Instagram. As is common in the industry, our marketers do not have long-term advertising commitments with us. Many of our marketers spend only a relatively small portion of their overall advertising budget with us. We expect our ability to grow advertising revenue will continue to be dependent on our ability to generate revenue from ads displayed on mobile devices. In addition, marketers may view some of our products as experimental and unproven. Marketers will not continue to do business with us, or they will reduce the prices they are willing to pay to advertise with us or the budgets they are willing to commit to us, if we do not deliver ads in an effective manner, or if they do not believe that their investment in advertising with us will generate a competitive return relative to other alternatives.
Our advertising revenue could also be adversely affected by a number of other factors, including:
â€¢ decreases in user engagement, including time spent on our products;
â€¢ our inability to continue to increase user access to and engagement with our mobile products;
â€¢ product changes or inventory management decisions we may make that change the size, format, frequency, or relative prominence of ads displayed on our products or of other unpaid content shared by marketers on our products;
â€¢ our inability to maintain or increase marketer demand, the pricing of our ads, or both;
â€¢ our inability to maintain or increase the quantity or quality of ads shown to users;
â€¢ changes to third-party policies that limit our ability to deliver or target advertising on mobile devices;
â€¢ the availability, accuracy, and utility of analytics and measurement solutions offered by us or third parties that demonstrate the value of our ads to marketers, or our ability to further improve such tools;
â€¢ loss of advertising market share to our competitors, including if prices for purchasing ads on Facebook increase or if competitors offer lower priced or more integrated products;
â€¢ adverse legal developments relating to advertising, including legislative and regulatory developments and developments in litigation;
â€¢ decisions by marketers to reduce their advertising as a result of adverse media reports or other negative publicity involving us, content on our products, developers with mobile and web applications that are integrated with our products, or other companies in our industry;
â€¢ the degree to which users opt out of certain types of ad targeting;
â€¢ the degree to which users cease or reduce the number of times they click on our ads;
â€¢ changes in the way advertising on mobile devices or on personal computers is measured or priced; and
â€¢ the impact of macroeconomic conditions, whether in the advertising industry in general, or among specific types of marketers or within particular geographies.
and further down:
[B]Technologies have been developed that can block the display of our ads, which could adversely affect our financial results.[/B]
Technologies have been developed, and will likely continue to be developed, that can block the display of our ads, particularly advertising displayed on personal computers. We generate substantially all of our revenue from advertising, including revenue resulting from the display of ads on personal computers. Revenue generated from the display of ads on personal computers has been impacted by these technologies from time to time. As a result, these technologies have had an adverse effect on our financial results and, if such technologies continue to proliferate, in particular with respect to mobile platforms, our future financial results may be harmed.
You know, it hurts reading it
[B]To be frank, on behalf of Jane and John Doe, it is like music to my ears.[/B]
You all should learn how to protect your privacy and not let them track you. They couple sites together for any third party to read and the same goes for Google which earns their money by routing you to paid advertisements instead of where you really should go to save a dollar or twenty