Facebook said on Wednesday that the number of advertisers placing ads on its social network has more than quadrupled during the last 18 months as marketers hope to get their products in front of its 500 million plus users.
Offices have been opened by Facebook around the world to serve advertising clients and the company has more than doubled the number of ad-sales people in 2009 compared to 2008. However, Facebook did not disclose the number of advertisers or sales people that it has.
Many companies are boosting their ad spending after seeing a lull during the recession in hopes of reaching consumers who spend large blocks of time on line. Notable advertisers Procter & Gamble Co., Toys “R” Us Inc. and Virgin America Inc.
The company is relying on ads in order to maintain its sales growth and lay the foundation for a potential initial public offering.
“We’re very well positioned as people come out of this current economic situation,” Mike Murphy, vice president of global sales, said in an interview with Business Week at Facebook’s headquarters in Palo Alto, California. “What we’ve become is absolutely core to marketing campaigns.”
Facebook sells ad units which are placed on the feed page of its users, where comments and pictures of their friends are posted. The ads also show up on user profile pages and other content pages to logged-in users.