Facebook’s revenue is expected to surpass $500 million by the end of 2009, a number that is only a fraction of what Google generated last year – $21.7 billion; however, with the right strategy, Facebook may very well find themselves on the same level as larger, publicly traded tech companies.
According to a study by Piper Jaffray & Co., local online advertising spending is expected to increase over the next few years, with an estimated $19.18 billion in spending by 2013, compared to only $14.47 billion in spending for national online advertising.
Since local businesses have repeatedly found success with Facebook’s advertising platform, Facebook can dominate the local advertising space if the trend continues. Furthermore, with a growth in brand advertising space and a solid virtual platform, it is likely Facebook’s revenue will eventually match or even surpass Google’s. Though there has been some uproar due to Facebook’s continually changing platform, the social media site maintains a large active user base that will enable a revenue explosion.
Click here to read the Unofficial Facebook Resource blog post.
Source: The Unofficial Facebook Resource; November 4, 2009
Source: eMarketer; November 3, 2009