Revenues from Facebook Ads Reached $3.8 Billion in 2011
Recent data, released by a prominent firm, confirms information that revenue from Facebook advertising increased considerably over the last year from one year previously. Nanigans, a firm based in the Boston area that specializes primarily in ads for the social networking site, is responsible for the confirmation. The news is surprising, and indeed, impressive considering that Facebook’s cost-per-click rate for its advertising (where an advertiser pays Facebook for each click one of its ads receives) is considered, by industry standards, to be fairly high. It must be noted, however, that Facebook has offered lucrative, discounted rates for ads which keep recipient within the Facebook network.
Other data, released by eMarketeer, Inc. have shown that from 2009 to 2011 Facebook ad revenues grew astoundingly from $738 billion to $3.8 billion. Facebook Credits, the social network’s virtual currency, has also proved to be a vital source of revenue, bringing in $4.27 billion in 2011.
Direct revenue information from Facebook is currently unavailable, as the company is still privately held. Sources say, however, that Facebook will be going at least semi-public with an IPO in May of this year. Right now, Sheryl Sandberg, Facebook’s COO, is being widely credited with company’s successful advertising strategy.