The mighty Facebook is set to blast through the $1bn ad barrier this year with researcher eMarketer predicting ad revenue of $1.38bn, way ahead of News Corporation’s struggling MySpace on $347m.
Next year Facebook should exceed Yahoo’s $1.6bn while MySpace is viewing a further decline to $297m. Facebook is now a “core buy for brand marketers” says eMarketer.
Despite occasional squalls over privacy there seems little doubt that everything in the garden is rosy for Facebook, which now has over 500m users worldwide, although founder Mark Zuckerman will be aware that social networks, like MySpace, do make a habit of being blitzed by the next big thing.
As for News Corporation and MySpace the frustration will be intense. Rupert Murdoch splashed out over $500m for MySpace a few years ago when most people thought social networks would struggle to make any money at all. He was right about their potential, unfortunately he didn’t see Facebook coming.