August 16, 2010 by Matt Thomas
eMarketer have released details of a new report which states that advertising revenue from social networking giants Facebook is set to rise to the point where it passes one billion pounds for the first time, next year. At the same time, profits for rivals MySpace are predicted to fall by fourteen percent, making the disparity between the two sites even wider.
The report predicts that Facebook will generate £1.13bn over the course of the year, as its 500 million users across the globe make it a viable and lucrative space for businesses around the world to advertise their products and services.
Advertisers in the Unites States currently supply approximately 65 percent of all advertising revenue for the site, according to the eMarketer research. MySpace, which is owned by Rupert Murdoch, is only due to generate $347m over the course of 2010. In contrast, Mark Zuckerberg, who owns Facebook, will see advertising revenue grow by 165 percent over the course of 2009 – 2011.
A senior analyst spokesperson for the research company eMarketer commented: “Brand advertisers are making Facebook a core buy. Ad spending is building quickly and the mass audience is one that marketers cannot ignore any longer.”
At the recent Cannes Lyons International Advertising Festival, Mark Zuckerberg commented: “it is almost a guarantee that Facebook will eventually top one billion users, with significant room for further growth in countries including Russia, Japan and China.”
Facebook hosts over 550,000 third-party applications, and boasts 500 million active users. More than 150 million people engage with the site on external websites every month, and there are more than 150 million active users currently accessing Facebook through their mobile devices.
Related posts:
