The social networking giant has turned out to be amongst the best advertising portals for online marketers and seems to be the lone competitor to give a really tough fight to Google’s organic search. The advertising revenue generated for Facebook has been estimated to rise by more than hundred percent this year. To be specific, 104 percent, that is to $3.8 billion. In totality, the revenue is expected to reach $4.27 billion in the current year. The total revenue includes revenue from Facebook Credits and other sources, but advertising as said above has the biggest portion of all which is almost 89 % of the total revenue.
The estimated advertising revenue for now is actually on a low as compared to its estimation which was made earlier this year in January. eMarketer had forecasted that the advertising revenues would reach $4.05 billion this year, which means that there has been a decrease as compared to that forecast by a significant $250 million.
eMarketer’s principal analyst, Debra Aho Williamson said that the downward revision in the analysis is a slight one and should not be concluded noting that Facebook’s overall business is on a decline and losing momentum. He continued saying, “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.”
The decline was not only for the estimated revenue, but as compared to 2009 advertising share, there is even a decline. In 2009, the advertising revenue had a share of 95 percent, which has come down by 6 percent. This is however a positive decline which notes that Facebook has managed to double the advertising intake and at the same time even diversified a bit to earn revenue via other means like Facebook Credits. For the monetary terms, revenue from Facebook Credits is estimated to go up to $470 million as compared to last year’s $140 million.
Facebook’s advertising revenue, for the U.S. alone is expected to surpass $2 billion this year. This accounts for a bit more than half of the worldwide total. But this cannot be assumed as to be the trend for Facebook’s advertising revenue as the estimations for 2012 and 2013 have something else in store for the stats. It can be noted that in 2012, the overseas advertising dollars would have a fifty percent share holding of the lot and in 2013 the percentage share would be more in fact. As for the ad revenue, the estimated earnings are deemed to be around $5.78 billion in 2012.
eMarketer has based their Facebook revenue estimates on consumer usage, marketer usage, as well as ad pricing and impressions on Facebook. The firm noted that it has even taken into account, revenue estimates from research firms and interviews with industry executives.
For the financial performance of Facebook, the social networking giant did not disclose any figures., but with it planning to go public next year, one would see it opening its books to all for conducting an initial public offering.