Friday, 6 August 2010

Some of Facebook's largest advertisers 'have increased their advertising spend ten-fold' in the past 12 months

"Sheryl Sandberg, Facebook's sites chief operating officer, claims that some of its most prolific advertisers have increased their spending ten-fold in the past 12 months. In an interview with Bloomberg News, she said that major brands are increasingly seeing Facebook as a viable route to consumers.
"Two years ago the big brands were experimenting with us. They started buying with us a year ago. Now, they're going big," she said. Facebook does not provide sales or profit figures, and Ms Sandberg declined to give the names of its largest advertisers in the interview. Big name advertisers are known to include Adidas and JP Morgan Chase.
However, recent reports suggested Facebook produced sales of $700m to $800m last year, and is on track for $1bn-plus bn this year. Last year it was thought to have made a small profit – in the tens of millions – although that is expected to grow this year, particularly in light of Ms Sandberg's comments.
In the interview, she disclosed that some advertisers have increased spending by more than 20-fold, while the company has managed to hold its advertising rates in line with the continued growth in the sites' users."
Source:  Interview with Facbook COO on Bloomberg News, reported by The Daily Telegraph, 4th August 2010

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