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Facebook UK ad revenues tipped to exceed £300m in 2013

Facebook UK is set to generate more than £300 million in ad revenues this year, up more than a third on 2012, according to upwardly revised forecasts following better than expected results in Q2.

Facebook: UK ad revenues expected to top £300m

Facebook: UK ad revenues expected to top £300m

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According to eMarketer, UK ad revenues at Facebook reached nearly £223 million ($353.3 million) in 2012, and the company will grow its UK ad business by 36% this year to £303 million ($481.4 million).

EMarketer's previous forecast of Facebook's UK ad revenues, published in June 2013, projected £279 million ($442.2 million) for this year. The upward revision follows Facebook's strong Q2 earnings results.

The social network's commercial operations are currently being led by James Quarles, the regional director for Southern Europe, on an interim basis amid an ongoing search for a long-term UK replacement for commercial director, Stephen Haines.

Google and Facebook dominate digital UK market

Together, Facebook and Google are now believed to account for 48% of all UK digital spend, with revenues of £2.6 billion for Google.

Google and Facebook will account for almost half of the digital adspend in the UK in 2013, with Google alone set to make up 43% of the predicted £6.1 billion revenue, according to the most recent figures released by eMarketer.

One major driver of growth for both companies, and the market overall, comes from mobile advertising.

Mobile will account for 16.5% of the total UK digital ad spending this year reaching nearly £1 billion, according to the eMarketer figures, up from 9.7% of the spend the year before.

EMarketer predicts this will increase to £3.7 billion in 2017, accounting for 44.4% of the expected £8.4 billion digital adspend.

By 2015, Google is expected to account for 46% of the digital adspend, and Facebook will make up 6% of the digital spend.

The figures predicted show that for Google the year-on-year percentage change in 2015 would be 13%, down from 19% in 2011. Facebook's percentage change also showed a drop from 56% year on year in 2011, to 17% in 2015.

The figures also show that the UK's digital adspend is expected to rise from £6.1 billion in 2013 to 8.36 billion in 2017.

  2011 2012 2013 2014 2015
Google
Digital ad revenues 1,891 2,268 2,607 2,998 3,388
- % change 19 20 15 15 13
- % of digital ad spending 39.3 41.9 43.0 43.9 46.0
Display ad revenues 208 249 365 510 745
- % change 24 20 46 40 46
- % of display ad spending 18.2 19.1 24.4 28.3 35.6
Facebook
Digital ad revenues 181 223 303 378 444
- % change 56 23 36 25 17
- % of digital ad spending 3.8 4.1 5.0 5.5 6.0
Display ad revenues 181 223 303 378 444
- % change 56 23 36 25 17
- % of display ad spending 15.9 17.1 20.2 21.0 21.2
Total
Digital ad spending 4,809 5,416 6,066 6,824 7,370
- % change 17.4 12.6 12.0 12.5 8.0
Display ad spending 1,143 1,304 1,498 1,802 2,093
- % change 20.9 14.1 14.9 20.2 16.2

This article was first published on mediaweek.co.uk

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