14 DAY TRIAL // Social networking holds a lot of promise for advertisers and, while many are warming up the idea of advertising in the highly personal sites, it will be quite some time before social networks command the kind of money that search sites do.
According to a report by eMarketer, ad revenue across all social networks will hit $10 billion, €7.5 billion, by 2013.
Much of that will go to Facebook, but the social network will still be making about as much as Google makes in a quarter.
"Revenue growth is solidly in the double digits in the US, but even more rapid growth elsewhere will mean spending outside the country will account for a slightly greater share each year," eMarketer writes.
"By 2013, non-US revenues will make up 51.9% of the total, which will hit nearly $10 billion worldwide. In the US, social networks will make $4.81 billion from ads that year," it says.
While the US will continue to account for a larger percentage of the social networking ad revenue, more than half of it will come from other countries. That trend will continue.
Much of the revenue will go to Facebook, obviously, by that time it may be the largest website on the planet and will certainly have more than one billion users.
Facebook hasn't been pursuing ad revenue that aggressively, it doesn't have to since it's been getting a lot of investor money so far. And what it does make from advertising is more than enough to fund the site and its growth.
The consultancy group has estimated that Facebook will make $3.8 billion, €2.85 in ad revenue this year and a whooping $7 billion, €5.25 by 2013. That's not entirely surprising considering the site's size. Facebook will also be making money from its virtual currency Credits.