As Facebook was estimating it’s total profits from 2009 to be $635 million, over half, or $350 million of that was attributed to performance marketing, where the advertiser pays only for measurable results.
Of that $350 million, $175 was attributed to social games like Farmville and the balance from growth in international markets. The exponential growth in the foreign markets is based in large part to “companies…. using the Facebook advertising API to sell ads in bulk.” By using Facebook’s demographic targeting capabilities, companies are slowly realizing the promise from social media to have the ability to communicate in new ways with customers.
The projected estimate of 2009 income for Facebook is great news, as profits for the site appear to be doubling every year. In a recent article by BloggingStocks, the social networking site’s estimated value was placed at approximately $35 billion, with performance marketing income obviously a contributing factor. With the potential for future revenue growth for Facebook, it looks as if their social data will pay off huge in the future.
