EMarketer Trim down Revenue Ballpark Figure of Facebook Inc (FB) for 2012

by Dagmark Garcia | Thursday, Aug 30, 2012 | 658 views

This year, Facebook Inc (NASDAQ:FB) possibly will place $5.04 billion in sales, EMarketer Inc. projections are down from the market researcher’s previous anticipation for $6.1 billion as the largest social network did great efforts to keep going advertising growth.

EMarketer anticipates revenue to increase 36 percent in 2012 and 31 percent in 2013, compared with an 88 percent growth last year. EMarketer reported that majority of Facebook’s sales is due to increase in advertising, will sluggish to 34 percent in 2012 and 29 percent in 2013, compared with more than 68 percent last year.

An EMarketer analyst, Debra Aho Williamson, said Facebook is struggling with questions from marketers about how glowing ads on its site are performing. Whereas Facebook stated it is working with companies to prove that the ads have an impact with its 955 million users, the social network has to shift more rapidly.

Williamson said “Sales haven’t been growing as fast as we and others had expected. There is still hesitation about the effectiveness of the advertising, about how much the advertising is worth.”

At a standstill, revenue expansion is observed stabilizing in 2013. The company will acquire assistance next year from newer proposals, as well as ads joined to searches and the Facebook Exchange, which allows advertisers arrive at precise types of users on the site based on their browsing history.

Latest mobile-ad services also should make a better impact next year as well. These services were not a large part of the prediction for 2012 before the amendment.
According to data compiled by Bloomberg, EMarketer’s new sales estimations for Facebook this year is more than the $4.92 billion average estimate from analysts to some extent.

During mid day trading, Facebook Inc (NASDAQ:FB) jumped +0.96% to $19.28 and total traded volume was 19.26 million shares. FB has market capitalization of 41.30 billion and its beta value stands at 1.11 times.

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