©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
NEW YORK: Facebook, the social network, is seeking to “educate the market” about the potential payback its advertising services deliver, in a bid to attract greater spending from major brand owners. In its first reporting quarter since becoming a public company, Facebook generated revenues of $1.2bn, a 32% lift year on year. Adspend climbed by 28% to $992m, with volumes up by 18% and prices by 9%.
However, while almost all of the organisations featured in the Global Ad Age 100, a listing of the world’s biggest advertisers, buy Facebook ads each month, the majority have not yet invested heavily. “Most only allocate a small size of their budget to Facebook, even though their customers spend large amounts of time using our service,” said Sheryl Sandberg, Facebook’s COO. “This imbalance represents a substantial opportunity for us if we can educate the market about the ROI our ads deliver.”