Social media giant Facebook claims seasonal advertising is to blame for its first dip in quarterly revenue in two years.

The network saw revenue fall by 6.5% quarter-on-quarter in the three months to March 31, according to Marketing Week.

Revenue remained over the $1bn mark – hitting $1.06bn – and was still strong year-on-year, up by 45%. However, profit dropped year-on-year to $205m – down 32% from the end of 2011.

Facebook says that dip is due to seasonal Internet marketing campaigns – as brands cash in on the festive rush. The company has also splashed out large sums in recent weeks as it prepares for its stock market IPO. It paid $300m for social photo app Instagram earlier this month. The spend on new acquisitions has overtaken its 45% revenue increase and eaten into profits, Facebook said.

The site also increased spend on marketing and sales, investing $123m more year-on-year to increase its appeal to potential investors ahead of the IPO.

Paid advertising makes up 82% of Facebook’s total income – and has risen by 37% year-on-year. Facebook now has more than 900m active monthly users – generating some 3.2bn likes and comments every day.

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