Facebook poised for advertising influx
Social networking phenomenon Facebook is reportedly soon to receive bids for advertising space on its site from a selection of top-name brands.
Despite not having produced a profit yet, Facebook was valued at £7.3 billion -more than British Airways - earlier this week when Microsoft took a stake in the firm.
And now fresh from landing that investment deal, Facebook is being examined as a potential marketing platform by firms such as Apple, Coca-Cola, Conde Nast, General Motors and Nike, according to the Times.
Advertising revenues are the most likely source of profit for Facebook, in a similar way to Google’s dominance of the sector in search.
And according to eMarketer predictions, it is set to provide an excellent source of funds - with the research firm’s estimates for this year already predicting advertising spend on social networks will near £620 million worldwide.
Such large sums are being directed towards sites like Facebook, MySpace and Bebo due to the detailed information they have stored about each site user - which marketers are hopeful of tapping to target their adverts to an unprecedented degree of accuracy.
