Facebook Sales 2012: Ads $5B!

by | Marketing on Social Media

Facebook Sales Trump Google, But For How Long?
Facebook Sales Trump Google, But For How Long?

Facebook Sales Trump Google, But For How Long?

We’ve been reporting quite often on the upcoming Facebook IPO and with Facebook sales for ads to top $5B this year according to market researchers, its no wonder that the IPO has been rumored to be set at a valuation at as high as $100B.  Lets take a look at just how much Facebook sales have increased compared to last year and the latest updates on the Facebook IPO thats already a blue-chip stock and it hasn’t even been opened for trading yet.

Facebook Sales | How It Fairs Out

With Google following close behind, Facebook sales for ads are still number one and its competition has been left in the dust.

Menlo Park, CA-based Facebook will still dominate this year, raking in $2.6 billion to Google’s $2.5 billion in display ad revenues. Yet by end of next year, the Mountain View, CA-based web and technology giant will hold a $3.7 billion to $3.3 billion lead over Facebook for display ads, eMarketer says.

According to eMarketer, the top three portals trail both Google and Facebook in ad revenue. Yahoo ($1.4 billion), Microsoft ($700 million), and AOL ($600 million) will finish 2012 behind the leaders in that order. The trio remains in the same positions next year, according to eMarketer, but will see incremental lifts in display ad revenues.
So it appears that even though Facebook sales are at the top this year, next year Google will overtake them, at least according to reports.  How close were the researchers in predicting Facebook sales for last year?
Facebook’s recent S-1 filing revealed that eMarketer was $600 million off its earlier estimates for Facebook’s 2011 ad sales ($3.2 billion). In its September 2011 calculation, the researcher said Facebook would draw $3.8 billion.
What’s $600 million anyways.  Thats pocket change, right folks?  Whatever the case, Facebook is racking in the big bucks with advertising.  Their other form of revenue?  Game credits.  Here’s a report we did earlier on Facebook sales:

So just how much revenue does Facebook pull in on a year to year basis and where exactly does it come from?  We have ran across a recent article from PC World on the Facebook IPO and just how much money they pull in from both advertising and gaming.

Facebook has been busy making money in recent years and growing fast. In 2009, the company said it brought in $777 million in revenue. That figure grew to $1.974 billion in 2010, and then almost doubled in 2011 when the company had $3.71 billion in revenue and $1 billion in profit.

The S-1 filing also shows that digital cows, crops, and mafia hit jobs are a big source of revenue for the company; social game maker Zynga was responsible for about 12 percent of Facebook’s revenue in 2011.

https://blackboxsocialmedia.comfacebook-ipo-the-insiders-scoop/

Facebook Sales | Whats the Status of the IPO?

Investors realize that Facebook sales are skyrocketing with no end in sight that’s why this stock is already being traded like crazy and its not even public!

The shareholder base has grown to more than 1,000, compared with the 50 to 100 investors most companies have when they go public, according to an estimate by Sam Hamadeh, head of research firm PrivCo. Private purchases pushed Facebook’s valuation past $100 billion this month, possibly limiting immediate gains for IPO investors, given that Facebook may seek a $75 billion to $100 billion value.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/23/BUIG1NB4KN.DTL#ixzz1nFntMzEi

What do our readers think about Facebook sales?  Do you think Facebook sales will overtake Google in the near future?

Image attribution: http://coyunturaeconomica.com/