Home > techcrunch > Facebook Estimated To Collect Almost 5 Percent Of U.S. Online Ad Revenue

Facebook Estimated To Collect Almost 5 Percent Of U.S. Online Ad Revenue

January 17th, 2011 01:06 admin Leave a comment Go to comments

Facebook may be responsible for nearly a quarter of all display ads shown in the U.S., but it only collects about 5 percent of U.S. online ad revenues. An article in AdAge reports on new estimates from eMarketer which peg Facebook’s 2010 advertising revenues at $1.86 billion, with $1.21 billion of that coming from the U.S. That would give Facebook a 4.7 percent share of the estimated $25.8 billion total spent in the U.S. on online advertising last year.

Despite its already impressive financial might, Facebook could be doing a lot better. The gap between its share of display ad impressions and ad dollars shows how poorly Facebook is monetizing those ads, and suggests there is still a lot of room for improvement. Indeed, by 2012, eMarketer estimates Facebook’s U.S. ad revenues will more than double to $2.89 billion and it will account for nearly 9 percent of the U.S. online advertising pie.

Meanwhile, Facebook’s worldwide advertising revenues are expected to reach $5.74 billion by 2012. As a (sad) point of comparison, eMarketer estimates that MySpace’s worldwide ad revenues will decline from a high of $470 million in 2009 to $156 million in 2012.

Below is a table from AdAge showing the estimates for Facebook’s U.S. advertising revenues compared to total U.S. online ad spending:

Facebook Share of Total US Online Advertising Spending, 2009-2012 (billions and % of total)
2009 2010 2011 2012
Facebook $0.56 $1.21 $2.19 $2.87
Total US online advertising spending $22.70 $25.80 $28.50 $32.60
Facebook % of total 2.4% 4.7% 7.7% 8.8%

 

Source: Facebook Estimated To Collect Almost 5 Percent Of U.S. Online Ad Revenue

Related Articles:

  1. U.S. Online Advertising Expected to Grow 14 Percent in 2010
  2. U.S. Online Advertising Expected to Grow 14 Percent in 2010
  3. Online Advertising Revenues Up 23 Percent Since Q1 2010, Reach $7.3 Billion
  4. eMarketer: Online Ad Spending Expected to Accelerate This Year To $31 Billion
  5. eMarketer: Global Ad Spending On Facebook Will Reach $4B By Year’s End
blog comments powered by Disqus