{"id":16,"date":"2009-07-17T21:42:00","date_gmt":"2009-07-17T21:42:00","guid":{"rendered":"http:\/\/marketing-epiphany.com\/?p=16"},"modified":"2023-06-02T21:04:18","modified_gmt":"2023-06-02T21:04:18","slug":"facebook-1-billion-company","status":"publish","type":"post","link":"https:\/\/rohan-hubli.com\/index.php\/2009\/07\/17\/facebook-1-billion-company\/","title":{"rendered":"Facebook, $1 Billion Company ?"},"content":{"rendered":"

Advertisers annually spend about $265 billion<\/strong> across 11 different types of media to reach U.S. consumers.<\/p>\n

Facebook, has established itself as a social networking site to reckon with and potentially see revenues of $1 Billion by 2015<\/strong>. The audacious goal seems very much possible in light of the following trends:<\/p>\n

    \n
  1. Contraction in offline Ad spending as advertisers migrates to less expensive media with better ROI potential. Online advertisement is the best obvious choice.<\/li>\n
  2. The advent of DVR has deprived television advertisers of a valuable stream to reach a large user base.<\/li>\n
  3. Declining Newspaper subscriptions (7%) will force advertisers to reallocate their budgets and find new means to deliver national and local advertisements. Historically newspapers have accounted for a 2.5 x<\/span> multiple for each AD impression served per household.<\/li>\n
  4. Paid Search Advertisements while very effective for National Brand advertisers has failed to generate the same kind of impact for local and small businesses.<\/li>\n<\/ol>\n

    Social Networking sites come closest to replicating the 2.5 x <\/span>multiple for each AD impression served because a typical user is connected to 100’s of other users, friends and family. Facebook definitely has the potential to address all or some of the above challenges and offers advertisers a unique value proposition.<\/p>\n

    Revenue projections assuming a modest 5% market share for Facebook, of the overall graphical advertising market, put revenues from advertising alone to about $800 Million by 2015.<\/strong><\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \n

    Local Online Advertisements<\/strong><\/p>\n<\/td>\n

    		\n

    2010<\/strong><\/p>\n<\/td>\n

    		\n

    2011<\/strong><\/p>\n<\/td>\n

    		\n

    2012<\/strong><\/p>\n<\/td>\n

    		\n

    2013<\/strong><\/p>\n<\/td>\n

    		\n

    2014<\/strong><\/p>\n<\/td>\n<\/tr>\n

    \n

    Annual Local Online Ad Impressions Served (Billions)2<\/sup><\/p>\n<\/td>\n

    		\n

    296<\/p>\n<\/td>\n

    		\n

    342<\/p>\n<\/td>\n

    		\n

    342<\/p>\n<\/td>\n

    		\n

    342<\/p>\n<\/td>\n

    		\n

    342<\/p>\n<\/td>\n<\/tr>\n

    \n

    Facebook: Share of Local Online Ad Impressions<\/p>\n<\/td>\n

    		\n

    2.00%<\/p>\n<\/td>\n

    		\n

    2.64%<\/p>\n<\/td>\n

    		\n

    3.48%<\/p>\n<\/td>\n

    		\n

    4.60%<\/p>\n<\/td>\n

    		\n

    5.52%<\/p>\n<\/td>\n<\/tr>\n

    \n

    Facebook Local AD Impression Multiple<\/p>\n<\/td>\n

    		\n

    3<\/p>\n<\/td>\n

    		\n

    3<\/p>\n<\/td>\n

    		\n

    3<\/p>\n<\/td>\n

    		\n

    3<\/p>\n<\/td>\n

    		\n

    3<\/p>\n<\/td>\n<\/tr>\n

    \n

    Cost per thousand impressions (CPM)<\/p>\n<\/td>\n

    		\n

    $7.50<\/p>\n<\/td>\n

    		\n

    $7.43<\/p>\n<\/td>\n

    		\n

    $7.35<\/p>\n<\/td>\n

    		\n

    $7.28<\/p>\n<\/td>\n

    		\n

    $7 click here now<\/a>.20<\/p>\n<\/td>\n<\/tr>\n

    \n

    Annual Local AD Revenues<\/strong><\/p>\n<\/td>\n

    		\n

    $133,105,500<\/strong><\/p>\n<\/td>\n

    		\n

    $200,903,319<\/strong><\/p>\n<\/td>\n

    		\n

    $262,540,457<\/strong><\/p>\n<\/td>\n

    		\n

    $343,087,869<\/strong><\/p>\n<\/td>\n

    		\n

    $407,588,389<\/strong><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    National Online Annual Advertisements<\/strong><\/p>\n<\/td>\n

    		\n

    2010<\/strong><\/p>\n<\/td>\n

    		\n

    2011<\/strong><\/p>\n<\/td>\n

    		\n

    2012<\/strong><\/p>\n<\/td>\n

    		\n

    2013<\/strong><\/p>\n<\/td>\n

    		\n

    2014<\/strong><\/p>\n<\/td>\n<\/tr>\n

    \n

    National Online Ad Impressions Served (Billions)1<\/sup><\/p>\n<\/td>\n

    		\n

    2,689<\/p>\n<\/td>\n

    		\n

    2,823<\/p>\n<\/td>\n

    		\n

    2,823<\/p>\n<\/td>\n

    		\n

    2,823<\/p>\n<\/td>\n

    		\n

    2,823<\/p>\n<\/td>\n<\/tr>\n

    \n

    Facebook: Share of Online Ad Impressions<\/p>\n<\/td>\n

    		\n

    2.00%<\/p>\n<\/td>\n

    		\n

    2.60%<\/p>\n<\/td>\n

    		\n

    3.12%<\/p>\n<\/td>\n

    		\n

    3.74%<\/p>\n<\/td>\n

    		\n

    4.49%<\/p>\n<\/td>\n<\/tr>\n

    \n

    Facebook AD Impression Multiple<\/p>\n<\/td>\n

    		\n

    2<\/p>\n<\/td>\n

    		\n

    2<\/p>\n<\/td>\n

    		\n

    2<\/p>\n<\/td>\n

    		\n

    2<\/p>\n<\/td>\n

    		\n

    2<\/p>\n<\/td>\n<\/tr>\n

    \n

    Cost per thousand impressions (CPM)<\/p>\n<\/td>\n

    		\n

    $1.15<\/p>\n<\/td>\n

    		\n

    $1.13<\/p>\n<\/td>\n

    		\n

    $1.12<\/p>\n<\/td>\n

    		\n

    $1.10<\/p>\n<\/td>\n

    		\n

    $1.08<\/p>\n<\/td>\n<\/tr>\n

    \n

    Annual National AD Revenues<\/strong><\/p>\n<\/td>\n

    		\n

    $123,694,000<\/strong><\/p>\n<\/td>\n

    		\n

    $166,309,675<\/strong><\/p>\n<\/td>\n

    		\n

    $196,578,036<\/strong><\/p>\n<\/td>\n

    		\n

    $232,355,239<\/strong><\/p>\n<\/td>\n

    		\n

    $274,643,892<\/strong><\/p>\n<\/td>\n<\/tr>\n

    \n

    Total Annual AD Revenues<\/strong><\/p>\n<\/td>\n

    		\n

    $256,799,500<\/strong><\/p>\n<\/td>\n

    		\n

    $367,212,994<\/strong><\/p>\n<\/td>\n

    		\n

    $459,118,493<\/strong><\/p>\n<\/td>\n

    		\n

    $575,443,108<\/strong><\/p>\n<\/td>\n

    		\n

    $682,232,281<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    References:<\/strong><\/p>\n

      \n
    1. J.P Morgan Global Equity Research, Jan 2009<\/li>\n
    2. Economics of Search Marketing, Borrell Associates, June 2009<\/li>\n
    3. IAB Internet Advertising Revenue Report, 2008<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

      Advertisers annually spend about $265 billion across 11 different types of media to reach U.S. consumers. Facebook, has established itself as a social networking site to reckon with and potentially see revenues of $1 Billion by 2015. The audacious goal seems very much possible in light of the following trends: Contraction in offline Ad spending … <\/p>\n

      Continue reading “Facebook, $1 Billion Company ?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-16","post","type-post","status-publish","format-standard","hentry","category-searchenginemarketing","entry"],"_links":{"self":[{"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/posts\/16","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/comments?post=16"}],"version-history":[{"count":1,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/posts\/16\/revisions"}],"predecessor-version":[{"id":474,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/posts\/16\/revisions\/474"}],"wp:attachment":[{"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/media?parent=16"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/categories?post=16"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rohan-hubli.com\/index.php\/wp-json\/wp\/v2\/tags?post=16"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}