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EMarketer Estimates Facebook Revenue in 2011 at $4.27 Billion

Social networking giant Facebook is expected to double its revenue to $4.27 billion in 2011, a research firm has claimed.

According to market research firm eMarketer, Facebook, which generated $1.86 billion in advertising revenue last year, will rake in $3.8 billion this year, representing an increase of 104 percent over last year.

With its 750 million plus users, the platform has become the first place for marketers to publicise their products and connect with existing and potential customers.

eMarketer also said that the company is expected to make $470 million from Facebook Credits this year, more than triple of the $140 million it made from Facebook Credits last year. Facebook Credits is Facebook’s virtual money scheme which allows users to purchase in-game material.

“Facebook’s revenue streams will continue to diversify, with ads representing a decreasing proportion of total revenue while other sources such as Facebook Credits will grow,” said Debra Aho Williamson, an analyst at eMarketer, in a statement.

“Even though Facebook has spent several years wooing marketers, many of them still believe the ads aren’t effective at driving clicks and other actions. Facebook must either work to improve its click-through rate or show advertisers that advertising on the site is effective even without a click or other action”, she added.

Ravi Mandalia
Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.