The Facebook insiders who believe the company should build a PayPal-killer will have to wait a year or two if not longer.
The reason: thanks to a sudden uptick in brand and self-service sales, Facebook’s ad sales team is — in the words of one source — “beating the shit out of its numbers.”
Inside Facebook reports that because of the sudden success, “Facebook’s leadership is almost entirely focused on ads for the time being.”
Last week, Facebook reported it was cash-flow positive. The news came nearly a year before even Facebook expected it to. Inside Facebook’s sources credit three new types of ad buyers:
- Performance advertisers — “the sorts of businesses like online education company University of Phoenix, are finding that ads on Facebook can be targeted so precisely that they are getting a clear return on investment.”
- Local advertisers — “These small businesses are finding that they can bring in new customers by targeting people who live nearby.”
- Social gaming companies — “especially Zynga. We hear that company might make up to $200 million in revenue this year.”