Facebook to Make $100M This Year
Did you know that Marketing Pilgrim has recently been named the unofficial Facebook rumor blog by . . . okay, by us. (If this bugs you, don’t worry, it’s temporary—it’ll be over as soon as Facebook stops doing stuff.)
MediaPost reports today on Facebook’s growth in membership—and revenues. As we’ve mentioned before, Facebook’s recent stats show their visitors up 89% YOY. They also win an average of 20.6 visits per visitor.
But perhaps more importantly, MediaPost hits on the question we’ve all asked:
[O]bservers are asking anew about the site’s value.
Well, the posh social network is profitable, will post a positive EBITA, and will do well over $100 million in revenue this year, according to Jim Breyer, managing partner of venture capital firm Accel Partners–one of Facebook’s biggest investors along with Greylock Partners and Meritech Capital Partners. . . .
According to major research companies, Facebook’s fortunes will only improve as inventory on social sites switches from remnant ads provided by ad networks to more lucrative rich media and video ads.
“Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory,” Jupiter Media analyst Emily Riley said in a recent report.
Riley hits on a key strength of advertising on social networks: the extreme demographic personalization that even Google can’t really guarantee.