Facebook Inc., the popular social media platform, is expected to earn more than $1 billion in advertising revenue according to Internet research firm eMarketer.
“Brand advertisers are making Facebook a core buy,” said eMarketer senior analyst Debra Aho Williamson in a statement.
“Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer. ... It’s really become a tremendous business for the company. We didn’t account for the size of that business last year in our estimate, but we found that it’s become a great tool for direct marketing advertisers,” she added.
Facebook membership reached 500 million in terms of users in July where usage ranged from several times a day on the social network platform.
The success behind Facebook being preferable to advertisers is part of its “self-serve” software tool, which enables advertisers to create their own online pitches and specifically target them based on their personal demographic attributes including their age or gender.
Feedback from “assisted self-serve” model has indicated its effectiveness, which also involves a certain level of human interaction with clients to engage with consumers.
The tool accounts for half of the ads placed on Facebook, according to eMarketer. Whereas its key competitor MySpace, which is owned by Rupert Murdoch’s News Corporation, is predicted to have a drop of 14 percent based on the report.
Around 65 percent of advertising revenue is derived from the U.S. market, says eMarketer. This compares with MySpace, which is estimated to be on target to make $347 million this year.
Facebook will basically reach around $1.3 billion worldwide in advertising revenue in 2010, and on its way to exceeding $1.7 billion in 2011. In summary, Mark Zuckerberg’s brainchild will have seen ad revenues grow by 165 percent between 2009 and 2011.
“Brand advertisers are making Facebook a core buy,” said Williamson. “Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer.”
Zuckerberg, who founded Facebook in his Harvard University dorm room, said at the Cannes Lions International Advertising Festival in June that “it is almost a guarantee” that Facebook will eventually top 1 billion users, with significant room for further growth in countries including Russia, Japan, and China.
Not bad for a 26-year-old entrepreneur.
“Brand advertisers are making Facebook a core buy,” said eMarketer senior analyst Debra Aho Williamson in a statement.
“Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer. ... It’s really become a tremendous business for the company. We didn’t account for the size of that business last year in our estimate, but we found that it’s become a great tool for direct marketing advertisers,” she added.
Facebook membership reached 500 million in terms of users in July where usage ranged from several times a day on the social network platform.
The success behind Facebook being preferable to advertisers is part of its “self-serve” software tool, which enables advertisers to create their own online pitches and specifically target them based on their personal demographic attributes including their age or gender.
Feedback from “assisted self-serve” model has indicated its effectiveness, which also involves a certain level of human interaction with clients to engage with consumers.
The tool accounts for half of the ads placed on Facebook, according to eMarketer. Whereas its key competitor MySpace, which is owned by Rupert Murdoch’s News Corporation, is predicted to have a drop of 14 percent based on the report.
Around 65 percent of advertising revenue is derived from the U.S. market, says eMarketer. This compares with MySpace, which is estimated to be on target to make $347 million this year.
Facebook will basically reach around $1.3 billion worldwide in advertising revenue in 2010, and on its way to exceeding $1.7 billion in 2011. In summary, Mark Zuckerberg’s brainchild will have seen ad revenues grow by 165 percent between 2009 and 2011.
“Brand advertisers are making Facebook a core buy,” said Williamson. “Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer.”
Zuckerberg, who founded Facebook in his Harvard University dorm room, said at the Cannes Lions International Advertising Festival in June that “it is almost a guarantee” that Facebook will eventually top 1 billion users, with significant room for further growth in countries including Russia, Japan, and China.
Not bad for a 26-year-old entrepreneur.
