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The Daily Stream

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Facebook Takes in 1.86B Ad Revenue—Is Facebook moving in on Google’s Territory?

January 19, 2011 // By: Stream Companies

Self-service advertising for small-medium sized businesses has brought Google billions—could Facebook’s growth in this category result in a future duopoly?

AdAge recently highlighted Facebook’s 2010 worldwide online ad revenue, which was $1.86 billion; a 151% increase over the company’s estimated 2009 advertising revenue of $740 million worldwide.

Facebook is still far from Google in terms of market share for self-service advertising; however new eMarketer estimates show that similar to Google, the majority of Facebook ad revenue comes from small businesses.

Reports show that 60% or $1.12 billion of the total 2010 ad revenue on Facebook was earned from smaller companies. The combined spending of these smaller companies beat out the $740 million in revenue coming from major marketers like Match.com, Coke, or P&G.

Debra Williamson, principal analyst at eMarketer believes that there’s an emerging duopoly in the self-serve online ad realm.

Facebook now accounts for close to 5% of total online ad spending and its share could increase to as much as 8% in the next year.

The social network has taken a hands-off approach when it comes to meeting marketers demands, creating an opportunity for third-party services to emerge.

These third party sites function to aid brand managers and agencies in their control over a brand’s social media presence.

Startups such as Buddy Media, Wildfire, and Argyle Social have built a business helping brand’s manage their Facebook presence. These third party sites provide a platform for more efficient management of content, detailed analytics, and methods for measuring ROI.

We’ll be keeping our eye on Facebook in 2011 and beyond. Will they be able to maintain growth levels similar to that of 2009-2010? It remains to be seen how much of the market share Facebook could take from Google. What do you think of Williamson’s prediction for a duopoly in self-serve online advertising?

For more information on online advertising and social media marketing for your business, contact us at StreamCompanies.com

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