100 per cent Increase in Facebook revenue in 2011
TOTAL Facebook revenue is expected to soar more than 100 per cent in 2011 to $4.27 billion.
It is the first time eMarketer has projected total revenue for the privately held Facebook. In the past, it only tracked ad revenue and not Facebook Credits, the New York Post reported, citing a report from data firm eMarketer.
Much of the projected total - 89 per cent, in fact - is from advertising, but Credits are an increasingly important share of Facebook’s revenue, eMarketer said.
Partners such as Zynga funnel 30 per cent of the money they make selling through Facebook, where all transactions must be conducted in Credits.
Some social media experts think Credits will open the floodgates on spending through Facebook, where members can use the virtual currency to buy everything from movie rentals to clothing.
Facebook critics say that the social network has not proved itself to be a go-to site for people looking to shop. Google search is still the number one driver of traffic to online merchants, and Facebook barely registers, according to a recent report from RichRelevance.
Facebook does not reveal revenue and at times has disagreed with eMarketer’s projections.
The social network company headed by Mark Zuckerberg is valued at roughly $80 billion based on shares traded on secondary markets.
For more on this story, go to the New York Post.
Read more: http://www.news.com.au/breaking-news/facebook-revenue-to-soar-100-per-cent-in-2011-report/story-e6frfku0-1226142931441#ixzz1YZmXCsny
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