Facebook’s chief operating officer said the social networking company was targeting a bigger ad market than the search ad market that has made Google Inc rich.

Sheryl Sandberg also told a group of high-tech specialists on Thursday that revenues were growing so fast at privately held Facebook that it turned cash positive recently, instead of in 2010 as predicted earlier this year.

A member of the board told Reuters the company was on target to bring in revenue of $500 million this year. Sandberg gave no numbers that would update that figure.

Sandberg, who has long fought the perception Facebook lacked a revenue model, laid out a gameplan to turn the company into a cash machine by describing how the company aimed to bring in revenues from novel ads aimed at its 300 million users.

She said advertising was a “funnel” that starts at the top by engaging many people and creating demand, then getting to the bottom where a select group bought a product.

source – in.reuters.com

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