Dive summary:
- Facebook has crossed the 1 million mark in active advertisers on the social network.
- Advertising now accounts for 85% percent of the company's total revenue which hit $1.25 billion in the first quarter of this year.
- The majority of ad dollars are coming from small business advertising on Facebook.
From the article:
"'Once [Facebook] launched new ad products targeted to small businesses in the middle of last year, they were able to significantly accelerate their revenue growth,' Brian Wieser, an analyst with Pivotal Research Group, wrote in a note to clients.
According to eMarketer research, small advertisers funneled approximately $32 billion into online ads in 2012. Small- and medium-sized businesses are vital to Facebook's ad model, Wieser said. 'While some observers might read this data as implying weakness in growth from other segments of advertisers, we view this very positively, as it speaks to the predictability and durability of the company's revenue growth,' Wieser wrote."
