According to the released data by Borrell Associates, it has been reported that 74% of advertisement revenue is generated through local business on facebook. In order to be more precise and specific about the revenue generated, an estimate of $310 million will be coming from Local advertisers this year. According to another research conducted by Alley Insider, it has also been reported that self-service ads generated around 200 Million earlier this month. There may be a different between the two estimates here, but one thing that can be surely concluded here is that a large number of revenue for facebook comes from local advertisements. Given estimates show great possibilities they play a major role in generating revenues for facebook. Local advertisements on facebook have only shown signs of big business making opportunities for not just the advertisers but also have proven to be a huge difference maker for facebook advertisement revenues. 74 % of the advertisements revenues being generated by facebook, and the advertisers getting maximum sales return on facebook (being the largest social network on the internet) endlessly excels to attract more advertisers as they get on board and wisely invest in the right areas for their business promotion. On the contrary, Google seem to face a threat being alarmed by the revenues generated by facebook through local advertisements. What is important here is to notice how the steady rise of this social networking giant continues to pull in more users every day and therefore certainly becomes an instant attention grabber for smart businesses and products to put in their energy on facebook advertisements to maximize their sales revenue. Facebook is without a doubt a great help for local advertisers to promote their local advertisements and it certainly helps the advertisers to target their audience easily and geographically.
Well, that is facebook side but what about the advertisers? I heard the conversion rate is poor compared to google Adword.