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Facebook ad revenues will double this year

Facebook ad revenues will double this year

The phenomenal growth rate of Facebook means that ad spend on the social networking site will more than double this year to reach $4bn (£2.4bn).

New research conducted by eMarketer shows that in 2010, global ad spend on Facebook totalled under half of that, at $1.86bn (£1.16bn).

But whilst 2011 will be a ‘boom’ year, in 2012 the growth rate of Facebook’s ad market will slow slightly.

It predicts that in 2012, the figure will reach $5.74bn (£3.59bn). That’s still another 42% rise on this year’s figure.

In the US, eMarketer estimates that Facebook accounted for 4.7% of the $25.8bn (£16.1m) online ad market in 2010. This year, its share will rise to 7.8% as it adds an estimated $1bn (£625m) in US ad revenues to its 2010 base.

These figures are detailed in its “Worldwide Social Network Ad Spending: 2011 Outlook” report. Author of the report, analyst Debra Aho Williamson said, “2010 was the year that Facebook firmly established itself as a major force, not only in social network advertising, but all of online advertising.”

“Facebook has clearly locked up the US market and even with the growth of other international social networks, its global presence is something that multinational marketers can’t ignore.

“If Facebook can keep growing its global user base and boost the amount of revenue it generates per user, it could even surpass these forecasts,” Williamson added.

Meanwhile, performance marketers also continue to increase their use of Facebook’s self-serve ad system, which eMarketer estimates now accounts for as much as 60% of total ad spending on Facebook, up from 50% in mid-2010.

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