Facebook: User-Centric Model

January 23, 2011

Allowing individuals to friend barely recognizable high school classmates and give scintillating updates on fetching lattes has garnered Facebook over 650 million global users and $1.86 billion in advertising revenue for 2010 says the recent Advertising Age article “Facebook Books $1.86B in Advertising; Muscles In on Google’s Turf”. eMarketer estimates that a majority of sales come from small- and medium-size companies making use of Facebook’s self-service system—territory that earned Google more than $200 billion in the last decade.

“Those advertisers are really juicing Facebook’s growth,” said Debra Williamson, principal analyst at eMarketer. “They buy advertising in bulk. They’ve done it for years on Google, and now they’re taking that expertise to Facebook.”

More surprising is Facebook isn’t pandering to big brand advertisers to rack up revenue but continuing to focus on developing consumer-centric products that attract users. This makes us question whether this type of advertising opportunity is better than Google’s options. If Facebook remains attractive to advertisers and can up their response rate, they will pass Google’s benchmark.

Christina Sheley, January 23, 2011

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One Response to “Facebook: User-Centric Model”

  1. Facebook Turns ‘Like’ Into Its Newest Ad | PrintMediaCentr.com on January 25th, 2011 12:26 pm

    […] Facebook: User-Centric Model (arnoldit.com) […]

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