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Facebook Advertising Predictions

Last updated 6 years ago

Businesses, not just in the U.S. but worldwide have tapped into the successes offered by social media network ads, and Facebook advertising is one of the major contenders in the network ad revenue market. Ad revenues for Facebook advertising are expected to exceed $5 billion dollars in 2012.

In the U.S. alone, the Facebook social network will capture approximately 6.5% of all spending for online advertising. Even though predictions reflect an upcoming decline of ad revenue growth, Facebook advertising is expected to increase by more than 60% in 2012 to over $5 billion dollars. This follows an already impressive growth increase in 2011 of slightly over 68%.

Out of the $5 billion dollars in Facebook advertising expected to be spent this year worldwide, the United States will account for $2.5 billion, which is slightly over half of the total expected revenue at 51%. That figure is down from 2011's 55% and is expected to fall to 49% in 2013-2014.

With Facebook capturing 6.5% of all ad revenues online in 2012, which is an increase from the 5.4% figure in 2011, its market share is expected to rise in 2013-2014 to 7.1%.

Essentially all of Facebook's global revenue in 2009 was solely comprised of advertising. This figure adjusted to 95% in 2010, and decreased again in 2011 to 85%. In 2012, another slight fall is expected by two percentage points to around 83%.

Some businesses implement the strategy of spreading their ad investment dollars across multiple sources, with social media fast becoming an advertising medium of choice. Deciding which social networks for ad placements is a part of that strategy.

FaceBook captures a large part of the ad market, followed by social networking games, Twitter, and LinkedIn. However, even with a spread of ad dollars across multiple venues, it is hard to ignore Facebook when it continues to capture a large portion of ad dollars spent.

Many businesses who weren't including social media networks in their marketing strategies have had to take a cold hard look at changing how they invest ad dollars, because it is plain to see that social media is around to stay, at least for a while anyway. As online advertising continues to capture a large volume of ad dollars, social network advertising must be working successfully for businesses.

What are your thoughts on advertising on Facebook? What is your experience running a campaign on Facebook?

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 $1.4 million in annual 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.

Interested in exploring the debate further?  Check out this article from


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