According to tech gossip trickling to TechCrunch, many insiders are saying Facebook will be making $2 billion in 2010 revenue. When MySpace was still on the rise, many pundits were dismissive of how badly social network traffic converted to sales. What Facebook did was focus on clean implementation and technology. As a result, they created their own ad network that produces highly targeted and fine grained controls that are every marketers dream. With 500 million users sharing everything from their real names, location, addresses, hobbies and friends networks, it might even prove to be more lucrative than Google’s network. The challenge will be in keeping targeting quality high as advertising costs go up (with the sites ever growing popularity).
There is also the possibility that Facebook could open up their advertising technology for other sites to participate in as well as the very real possibility of more aggressively monetizing social games and other applications utilizing the Facebook platform.
As a point of comparison, Google first crossed the $1 billion in revenue threshold in 2004, the year they went public. By 2006 they had $10 billion in revenue, and they crossed $20 billion in 2008.