Facebook revenue growth is finally catching up with user adoption. Several sources close to Facebook tell TBI Research analyst Rory Maher that the company is about to hit a $1 billion annual revenue run-rate. That’s a huge increase over the $550 million revenues Facebook will reportedly reach in 2009.
How has Facebook finally done it?
Mainly, by reaching scale. The company now has 350 million active users. Facebook.com has a Super Bowl-sized audience (or bigger) all the time. Even lousy ad products should make money against that. Rory writes that Facebook is also a billion-dollar business because:
- Branded direct-sale inventory commands premium CPMs.
- Self-service display advertising is going nuts.
- Facebook targeting is like crack for advertisers.
- Virtual goods and search are chipping in.