Facebook looks all set to cross the $1 billion mark with their annual revenue for 2009. This figure is close to double the $550 million that was predicted to be their annual revenue for the year.
This information was revealed to Rory Maher a research analyst with TBI by sources close to Facebook. According to eMarketer, Facebook has become “the premier destination for marketers who are using social media.
A major factor in this super success of Facebook is the fact that they have concentrated on building ad technology, and this has let Facebook leap ahead of its rivals like MySpace in a relatively short time.
Due to the up-to-date technology which they offer, Facebook is able to charge its advertisers at premium rates. Facebook’s rate card shows that they charge $20 per CPM (Cost per 1,000 impressions) which is much higher than what most other social sites are able to charge. Facebook has also set a minimum spend limit of $50,000 for agencies.
Facebook also offers a CPC (Cost per click) basis service which ranges from $0.15 to $1.10 per click depending on the product being advertised.
They have also greatly increased the use of their self-serve advertising platform. Another important reason for their sudden growth is the fact that their audience has now crossed the 350 million mark worldwide.
Facebook also allows their advertisers to target their audience in a very precise manner, using any number of criteria they want.
Facebook also forms a very crucial part of every viral campaign. Advertisers are allowed to create fan pages, or connect to Facebook Connect, thus notifying all the contacts of Facebook users about the products they are advertising.
Facebook has also recently struck a deal with Microsoft, to incorporate their feeds into the search results on Bing.
All this indicates that Facebook is likely to continue growing next year as well.