According to the latest research from eMarketer, advertisers will spend $1.28 billion worldwide to reach Facebook’s 500 million users compared to $665 million in ad revenue in 2009. US ad spending on Facebook is estimated to be $835 million this year, up from $500 million in 2009.
The picture was not so rosy for ad spending on MySpace. MySpace is expected to bring in just $347 million this year (down from over $400 million in 2009) and the number is forecasted to drop by 14 percent to $297 million in ad revenue for 2011. Facebook worldwide ad spending is expected to reach $1.8 billion in 2011.
The numbers aren’t necessarily surprising. Facebook has grown to be largest social network in the world, and MySpace has been bleeding traffic. There have been a number of reports that Facebook was on track to surpass $1 billion in ad sales this year. And the company recently revealed that advertising revenue has grown 10-fold this year even though rates have remained at the same price-point.
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...