Business | Media and Marketing
Facebook ad revenue to pass $1b in 2011
Social networking rival MySpace expects 14 per cent decline
- By Mark Sweney, Guardian News & Media Ltd
- Published: 00:00 August 19, 2010
London: Advertising revenue at Facebook is expected to pass the $1 billion mark next year for the first time, as rival MySpace is expected to see ad revenues shrink 14 per cent, according to a new report.
Facebook, which has more than 500 million global users, leaving one-time social networking darling MySpace in the shade, is expected to bring in $1.285 billion (Dh4.71 billion) in ad revenue this year.
About 65 per cent of ad revenue is derived from the US market, according to a report from research firm eMarketer.
This compares with MySpace, which is owned by Rupert Murdoch's News Corporation, which is estimated to be on target to make $347 million this year. Next year Facebook is forecast to hit $1.76 billion, with a slightly lower 60 per cent coming from the US market, which means Mark Zuckerberg's brainchild will have seen ad revenues grow by 165 per cent between 2009 and 2011. MySpace on the other hand is expected to see ad revenues fall 14 per cent between 2010 and 2011 to $297 million.
"Brand advertisers are making Facebook a core buy," said Debra Aho Williamson, a senior analyst at eMarketer. "Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer."
Zuckerberg said "it is almost a guarantee" that Facebook will eventually top one billion users.
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