Online advertising accounted for 83 per cent of Facebook's $3.71 billion (£2.4 billion) revenue in 2011 due to a 42 per cent increase in the number of ads delivered and an 18 per cent rise in the average price of ads on the social network.
The company also revealed that its total revenue increased by 88 per cent from 2010 when it made $1.97 million (£1.24 million), reports Business Day.
A 69 per cent growth in online advertising revenue has been named as the main way in which the social network has boosted its profits over the last 12 months.
Facebook could now be extending its advertising offerings as the Financial Times reports that the social network may roll out mobile advertising as soon as March this year.
At least half of Facebook users access the social network using their smartphones, suggesting mobile advertising would be lucrative.
The social network also made $557 million (£352.2 million) from Facebook Payments, the virtual currency that game developers have to use on the site.
