Report: Facebook will earn $16 billion this year from ads

facebook will make billions from ads

facebook will make billions from ads

Advertisers have been convincing brands to spend on ads that are placed on social networks due to their high engagement rates and their rapid adoption. These social networks with their expanding user bases in turn have been bolstering their ad structures which are aimed to make it easy for these brands place ads on their platform. Thanks to these efforts, revenues from ads placed on social media sites have seen on year rise in revenues generated from the ads.

eMarketer came up with a report which revealed that Facebook commands 64,8% or $16.29 billion of the total ad revenue. This apparently is a on year increase of 41.8% on the revenue gained last year. It is expected the social media giant will capture $12.76 from each user this year and will rise to $15.18 per user in 2016

Instagram was also featured in the report where it is poised to earn $600 million this year, which is 5% of its parent company’s total revenue. However, its contribution will be more significant in the next couple of years where it is predicted that next year, it would pulling $1.48 billion, which is a massive 149% increase from the projected revenue for this year. This won’t be a surprise as now they have surpassed the 400 million users milestone and leveraging on their efforts like their new ad strategies, Instagram’s contribution to Facebook’s total revenue will become more significant in the future.

On the other hand, Twitter is expected to rake in $2.03 billion this year which is a 62% jump from last year figures. This is only 8% of the total ad spent, which is far less than what Facebook is expected to pull in.  The company recently rolled out Twitter Ads worldwide and the fruits of that effort are yet to be seen.

Source: eMarketer