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Facebook Advertising Is A Cash Machine

Last updated 6 years ago

Does your company advertise on Facebook?  Have you ever wondered how much expected revenue will come from Facebook advertising?  eMarketer is expecting that Facebook advertising revenue (globally) will reach $3.8 billion this year.  This is a slight difference from eMarketer’s earlier forecast in January 2011, which was $4.05 billion. 

According to Debra Aho Williamson, eMarketer principal analyst, “this slight revision downward for 2011 should not be taken as a sign that Facebook’s overall business is losing momentum [because] Facebook’s revenue streams will continue to diversify, with ads representing a decreasing proportion of total revenue while other sources, such as Facebook Credits, will grow” (eMarketer).

You may already be aware that the majority of Facebook’s revenue comes from its advertising.  For 2011, Facebook advertising is anticipated to make up 89% of total revenues for the social media giant.  For your information, eMarketer’s estimates are based on diverse sources, including: a meta-analysis of estimates on Facebook advertising stats (consumer usage, marketer usage, ad pricing and impressions), revenue assessments from research companies, and discussions with industry executives. 

Facebook’s advertising revenues in the U.S. will exceed $2 billion for 2011, which will represent slightly over half the worldwide total.  eMarketer believes that the U.S. advertising revenues will continue to increase, but non-U.S. advertising revenues will experience significant growth over the next few years, and probably surpass U.S. advertising revenues by 2013:

Despite the fact of Facebook’s bright future, not all companies are convinced that Facebook provides enough ROI.  Therefore, the legendary social media company will have to find new approaches to retain its advertisers.

Did you know Facebook’s advertising revenues before reading this blog post?  Is your company considering Facebook advertising in the near future?  Why or why not?

About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore.  His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies.  He manages over $1.2 million in yearly marketing budgets and has worked with local businesses, agencies and the US government.  Give him a call at (877)655-3438 to schedule a free consultation.

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