NEW YORK: Facebook's advertising revenues will increase by 60% in 2012, though the pace of annual growth will moderate in the years ahead, new forecasts have shown.Analysis from eMarketer
suggests that Facebook's paid-for ad offerings will generate $5.06bn worldwide this year, up 60.5% from the $3.15bn recorded in 2011.
This total includes income from Facebook selling its display ad inventory and its Sponsored Stories, which were introduced in early 2011
. Marketing expenditures made by brands on their official Facebook profiles were not included.
By 2014, the site's ad growth is anticipated to have moderated to 13.7%, with overall revenues reaching $7.64bn.
An increase in Facebook's user numbers accounts for much of the overall revenue growth.
According to latest figures from researchers at Socialbakers
, Facebook has 834m active users. The site is enjoying explosive growth in emerging markets, and is still to penetrate China, the world's most-populous nation.
Meanwhile, figures from Alexa, a web information service, indicate that Facebook is the world's second most-visited site
Due to high emerging market adoption rates, eMarketer suggested that the share of Facebook ad revenues taken in the US, the site's core market, will shrink from 55% in 2011 to 49% in 2014.
In business terms, advertising will continue to be Facebook's biggest source of revenues, accounting for 83% of the overall total in 2014, barely down from last year's 85%.
Data sourced from eMarketer/Socialbakers; additional content by Warc staff