Average Revenue Per User for SocNets on the Rise
The average revenue per user of social networks should reach $4 this year. Social network advertising average revenue per user will approach $3.50, according to a new white paper from Deloitte. These figures are an improvement from estimates of more than $3.50 total average revenue per user and $3 advertising average revenue per user for 2010, as well as hard figures of a little more than $3 total average revenue per user and about $2.50 advertising average revenue per user for 2009.
Deloitte estimates worldwide social network membership will reach about 1 billion this year, meaning total social network average revenue per user should equal around $4 billion. In addition, social networks may deliver more than 2 trillion ads this year. Yet Deloitte expects social networks to only produce less than 1% of global ad spend during 2011.
Facebook's Revenue Per Search to Decline in Coming Years
The average advertising revenue generated by Facebook for every 1,000 searches conducted on its website has declined from an estimated $8 to $5 currently, according to Trefis.
The firm expect Facebook’s RPS to decline over time as Facebook is not yet a search engine at its core like Google, Microsoft’s Bing or Baidu - or an open web portal like Yahoo or AOL and thus requires users to login to run searches. Also the international mix of total searches increases will lead to RPS decline, Trefis also said. "While we expect Facebook’s RPS will fall to $3.20 per 1,000 searches by the end of Trefis forecast period, Trefis members predict a relatively flatter level of $4.70 per 1,000 searches."
Its current valuation for Facebook is $45.10 billion.