Facebook will earn $ 1 billion in advertising in 2010

The super-successful social network Facebook continues to conquer the heights of traffic and profitability. Not so long ago, the number of Facebook users exceeded half a billion people. Now a new record may soon be taken - $ 1.3 billion, advertising revenue. Yes, advertisers spend a lot of money to promote their products and services on a social network. According to experts, this year the advertising budgets of many companies for the promotion of goods and services on Facebook were increased several times. According to those same experts, in 2011, Facebook’s ad revenue could exceed $ 1.7 billion.

“Advertiser deductions are Facebook’s main revenue item. Advertisers are rapidly increasing their budgets for promoting services and products, ”says analyst Debra Aho Williamson.

Of the revenues this year, most of the $ 835 million comes from advertisers from the United States, and the majority of Facebook users are from this country. Interestingly, the 2011 earnings expected by the company’s management should exceed the 2009 revenues by 112% - a very good indicator for such a short period. Companies from other countries are currently spending about 450 million dollars a year on promoting their own goods and services, and in 2011 the “international” aggregate budget of advertisers may reach 700 million.

The huge incomes of the social network Facebook are a tacit refutation of the words of most economists that social networks cannot attract significant advertising budgets. Particularly active were supporters of this opinion during the financial crisis, when many companies hastily cut their own budget. However, as we see, Facebook’s business is going uphill (although, it would seem, much higher).

But just recently, a couple of years ago, Facebook and MySpace went head to head, and the brainchild of Rupert Murdoch, the owner of News Corp. (the company that owns the assets of Facebook), evoked more confidence from advertisers than created by yesterday's student Facebook. Now, Facebook is ahead of the rest, and its advertising revenue (as well as any other income) can only be envied. Interestingly, how much does the Russian version of Facebook “Vkontakte” earn on advertising? Anyone in the know?

A source