FB's Projected Ad Revenue Drops Before IPO

Facebook's advertisement revenue is below projections for the first three months of 2012, so the company is unleashing a revamped premium ad campaign to boost sales numbers just before its initial public offering, reports said today.

PrivCo, dubbed the private company financial data authority, reported receiving leaked documents and has analyzed the information with its own particular twist:

PrivCo . . . has analyzed the leaked documents, confirmed with other sources, and examined the evidence in conjunction with recent rapid-fire changes in Facebook's ad intrusiveness and frequency (all implemented by senior management in the weeks leading up to its IPO filing to attempt to make up for ad revenue shortfalls). Among others, these are the key indicators Facebook is scrambling to meet its short-term numbers by sacrificing user experience for short-term ad revenue boosts.

If what PrivCo says is true, that means Facebook users are going to see a heck of a lot more intrusive and ubiquitous ads.

While PrivCo's information can't be corroborated by most outlets (including ours,) VentureBeat does mention that eMarketer projected a 60 percent jump in ad revenue from 2011 for Facebook, but that it would have a much steeper drop off in ad growth than ever before.

So, if you're thinking of investing in Facebook, keep this in mind.

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