SAN FRANCISCO -- Analysts are getting less bullish on Facebook's prospects of kick-starting advertising growth. Research firm EMarketer on Thursday reduced its earlier projection for Facebook sales this year by $1 billion.
EMarketer projects that Facebook will generate $5 billion in sales in 2012, not the $6 billion it predicted in February. Facebook makes most of its money from advertising.
The new report brings EMarketer more in line with Wall Street forecasts and reflects the broader question in the marketplace of how effective ads are on Facebook and how much they are worth. It's unclear how quickly initiatives such as new mobile ads or Facebook Exchange, which lets advertisers target users based on their browsing history, can contribute meaningfully.
EMarketer said it expects Facebook revenue to increase 36% this year and 31% in 2013. Revenue from advertising will rise 34% this year and 29% in 2013, the research firm estimated.
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