Facebook Sales 2012: Ads $5B!


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Facebook Sales 2012: Ads $5B!

  1. 1. Facebook Sales2012: Ads $5B!
  2. 2. We’ve been reporting quite oftenon the upcoming Facebook IPOand with Facebook sales for ads totop $5B this year according tomarket researchers, its no wonderthat the IPO has been rumored tobe set at a valuation at as high as$100B.
  3. 3. Facebook Sales | How It FairsOut With Google following close behind, Facebook sales for ads are still number one and its competition has been left in the dust.
  4. 4. Menlo Park, CA-based Facebookwill still dominate this year, raking in $2.6 billion to Google’s $2.5billion in display ad revenues. Yetby 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.
  5. 5. According to eMarketer, the topthree 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.
  6. 6. 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 theresearchers in predicting Facebook sales for last year?
  7. 7. Facebook’s recent S-1 filingrevealed that eMarketer was $600million 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.
  8. 8. What’s $600 million anyways. Thats pocketchange, right folks? Whatever thecase, 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:
  9. 9. So just how much revenue doesFacebook pull in on a year to year basis and where exactly does itcome 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.
  10. 10. 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 figuregrew to $1.974 billion in 2010, and then almost doubled in 2011 when the company had $3.71billion in revenue and $1 billion in profit.
  11. 11. The S-1 filing also shows thatdigital cows, crops, and mafia hitjobs are a big source of revenue for the company; social gamemaker Zynga was responsible for about 12 percent of Facebook’s revenue in 2011.
  12. 12. Facebook Sales | Whats theStatus 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!
  13. 13. The shareholder base has grown to more than 1,000, compared with the 50 to 100 investors most companies have when they gopublic, according to an estimate by Sam Hamadeh, head of research firm PrivCo.
  14. 14. Private purchases pushed Facebook’s valuation past $100 billion this month, possiblylimiting immediate gains for IPO investors, given that Facebook may seek a $75 billion to $100 billion value.
  15. 15. What do our readers think about Facebook sales? Do you think Facebook sales will overtake Google in the near future?