Facebook Ad Revenue Has Room for Improvement
Facebook Ad Revenue Has Room for
Improvement
Though social networking giant Facebook may be responsible for nearly 25 percent of all display ads shown on the web in the US, the company earns less than 5 percent of total online ad revenue, according to data from eMarketer.
The report lists Facebook's 2010 ad revenue at $1.86 billion, with $1.21 billion coming from US advertising. That figure gives Facebook a 4.7 percent share of the estimated total of $25.8 billion spent in the US on online advertising last year.
What this means is that despite its already considerable financial power, Facebook could be doing even better. The gap between its share of ad impressions and ad revenue shows that the company is not monetizing the ads effectively, meaning there is much room for improvement. eMarketer estimates that the company's ad revenue will more than double by 2012 to around $2.9 billion, and will account for almost 9 percent of US online ad revenue.
Though social networking giant Facebook may be responsible for nearly 25 percent of all display ads shown on the web in the US, the company earns less than 5 percent of total online ad revenue, according to data from eMarketer.
The report lists Facebook's 2010 ad revenue at $1.86 billion, with $1.21 billion coming from US advertising. That figure gives Facebook a 4.7 percent share of the estimated total of $25.8 billion spent in the US on online advertising last year.
What this means is that despite its already considerable financial power, Facebook could be doing even better. The gap between its share of ad impressions and ad revenue shows that the company is not monetizing the ads effectively, meaning there is much room for improvement. eMarketer estimates that the company's ad revenue will more than double by 2012 to around $2.9 billion, and will account for almost 9 percent of US online ad revenue.
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