It appears that Facebook is going to end 2010 with even higher-than-projected revenue of about $2 billion--up from $700-800 million last year. Of course, these are informed guesses, as Facebook, as a private company, does not release exact figures.
But what is clear is that Facebook's massive 500 million users are driving gains in display advertising for the social networking behemoth--which now accounts for more than 9% of the overall U.S. market for online banners, videos and text/graphics ads. Marketers such as Coca-Cola, JPMorgan Chase and Adidas AG are flocking to the site to take advantage of the "heat" around social networking.
Bloomberg points out that Facebook has maintained ad prices, even as its user growth creates a surge of space for commercial messages. Facebook also makes money from a credits program, which lets people buy virtual items in online games.
“People are learning and they’re figuring out how they can work with Facebook,” said Christian Juhl, a president at digital ad agency Razorfish, part of Paris-based Publicis Groupe SA. “You can prove success without a massive expenditure.”