Last week, Facebook came out with their highly-anticipated report on second-quarter earnings. Overall, the numbers were excellent with a total revenue of $1.81 billion, up from analyst predictions of $1.62 billion. Especially impressive was their mobile advertising revenue percentage, which was 41%, an 11% increase from the previous quarter’s total of 30%.
This has sparked discussion about the future of mobile advertising vs. desktop advertising, as well as debate on whether or not Facebook stock will continue to rise.
Impressive Mobile Ad Revenue
In their second-quarter report, Facebook had 819 million mobile users every month, showing a 51% increase in the past year. In addition to their impressive 41% percentage of ad revenue from mobile ads, these numbers show that the mobile customer base and advertising are rapidly expanding. CEO Mark Zuckerberg contends that mobile advertising will soon begin to surpass desktop advertising in revenue, and he states that mobile use is causing users to spend more time on Facebook than they ever have before, particularly teen users.
Will Stock Continue to Rise?
Despite these impressive figures, analysts first wonder if all major social media networks will be able to generate similar results with mobile platforms. Facebook has incomparable amounts of user data, likely enabling them to provide better ad targeting. In addition, others discuss the viability of mobile revenue in the long term. Facebook has largely relied on startups to purchase ads, particularly the popular ads for installing mobile apps. This cycle may not be a lasting generator of revenue if startups no longer need ads for early exposure and other startups fail to take their place.
What This Means for Marketing
While the results of mobile advertising remain unclear in the long run, it is undeniable that mobile advertising and mobile use of Facebook are currently expanding at an impressive rate. For businesses looking to increase their social media presence, it appears that mobile advertising is the next frontier. Optimizing your ads and pages for mobile use is a necessity for any successful marketing strategy to stay current and profitable.
How has your business taken advantage of the rise in mobile advertising?
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