Thursday, January 20, 2011

Facebook soaring

Facebook ad revenue could grow by more than 40 percent next year to nearly $6 billion, with non-US sales equaling US revenue for the first time, according to a new projection from eMarketer.

The leap, to $5.74 billion in 2012, comes on the top of a 118 percent jump this year, to an estimated $4.05 billion, from 2010, eMarketer said.

The Web measurement firm revised its 2010 ad revenue number for Facebook up from $1.3 billion to $1.86 billion because of Facebook's explosive growth between August and the end of the year.

It also suggests that Facebook earned some $140 million last year.

Around 60 percent of Facebook's ad revenue comes from the company's self-serve system, which displays ads on the right side of each page.

The rest is derived from home-page display advertising.

Debra Aho Williamson, principal analyst on social marketing for eMarketer, said her data is drawn from both ad agency spenders.

"Much of their growth has come from international markets. They're No. 1 in a lot of countries, except China, where they're blocked," she said.

According to her analysis, total US social network ad revenue in 2011 will grow by 55 percent to $3.08 billion -- $2.19 billion of which goes to Facebook.

After Facebook, the biggest operators in social media are MySpace, LinkedIn, Classmates.com and Twitter. MySpace is owned by News Corp., which also owns The Post.

One source familiar with Facebook's business said the growth was all the more impressive given that "Facebook hasn't really been innovating with its ad products.

"They've been fine-tuning the targeting. The biggest thing that could drive growth is to start an ad network, but they've always denied they're developing a network."

The top advertisers in social media, according to ComScore impressions data for the third quarter, are: AT&T, InterActive Corp. and Make-My-Baby.com.

Other Top 10 spenders include Verizon Communications, Google, Disney and AOL. catkinson@nypost.com

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