Facebook Doubles Revenue: The New Operating System for Online Ad Delivery?

  • Facebook’s revenues have doubled the first half of 2011 to $1.6 billion, putting the social network on course to possibly earn $4 billion this year.
  • “It’s simply too late for anyone, perhaps even Google, to create a social network that can compete with Facebook,” writes Robert Hof in a related story.
  • Reuters suggests this news underscores the social networker’s appeal to advertisers. “We really see Facebook as becoming like the operating system for delivering ads on the Internet,” said Dave Williams, CEO of Blinq Media.
  • Williams added that Facebook’s “like” feature, that now helps endorse products and companies, provides valuable data that other online services can’t match.
  • “Companies like Yahoo are relying on third party user behavioral data based on things like cookies. On Facebook that’s data that users have revealed about themselves,” he said.
  • “The price that companies pay for every consumer that clicks on a Facebook ad increased 62 percent between the fourth quarter of 2010 and the second quarter of 2011, according to Efficient Frontier, another firm that helps companies deliver ad campaigns on Facebook,” reports Reuters.