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The Future of Facebook Ad Revenue

04 Dec 2013

Facebook hit all the right numbers during its most recent earnings call last month. Revenue was up. Profit was higher than any quarter in company history. And user totals were up in almost every category imaginable, including monthly actives, daily actives and mobile.

It's a safe bet that Facebook will see even higher revenue growth in the upcoming quarter - the holidays always produce great ad revenue - but that's not the only reason to be optimistic about Facebook's future revenue stream.

The social network has 1 million advertisers on its platform, a number first announced in June, and double the number of advertisers from a year before, said Dan Levy, Facebook's director of small businesses. One million advertisers is an impressive figure. Equally impressive is that Facebook has 25 million small businesses with active company pages, which means only 4 per cent of companies that use Facebook to connect with customers are also using the site to advertise. That's a lot of potential advertising revenue sitting close at hand.

"I think that there is a goldmine waiting to be exhausted," Wedbush Securities analyst Michael Pachter, told Mashable in an email. "The 25 million businesses with active pages clearly understand that having a presence on Facebook has value to them, and it is only a matter of time before a large number of them experiment with advertising on Facebook."

To read the full article on Mashable click here.

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