Facebook is expected to bring in $605M in annual revenues for 2010, according to the latest eMarketer report. This will also be the first time since the largest social networking site will outperform financially than MySpace, the number two competitor in social networking. In contrast, MySpace revenue will hold at $385M, which is a striking difference between the two. However, much of that makes sense with Facebook’s simplicity, higher user retention rate, a more focused growth strategy and a significant lead in traffic.

AllFacebook points out eMarketer’s numbers to be relatively conservative, since Facebook is expected to generate more than $500M in revenue this year. That also means that Facebook could very well pass MySpace in total sales this year. Overall, ad spending on social networking sites will continue to grow 7.1 percent to reach $1.3B with majority of it going to Facebook. Despite the ongoing concerns about Facebook and keeping its revenue growing in conjunction with its user base, the company will do just fine.