It has been almost a year since Facebook’s IPO and subsequent rapid drop in its stock price. A lot has happened in the past year and late yesterday Facebook’s quarterly report came out with some interesting numbers. The focus on mobile is continuing to pay off for Facebook both in terms of revenue and its stock price.
Will Facebook Soon Be a Mobile Company?
Wall Street and Zuckerberg are probably quite happy with the latest numbers for the company which came out late yesterday. According to Parmy Olson on Forbes, “$375 million, or 30% of all ad revenue came from ads shown on mobile devices.” Last quarter – yes quarter, not year – mobile ad revenue only accounted for 23% of Facebook’s entire ad revenue.
That’s a significant increase in a mere quarter and one that Wall Street and the pundits are paying attention to. Facebook also saw “an increase of 38%” from $1.06 billion to $1.46 billion in total advertising revenue. It appears that the changes Facebook has been making have done enough to encourage businesses and agencies to advertise with Facebook, and to increasingly advertise on mobile.
Mobile Numbers Up
As their mobile ad revenues continue to rise, it’s important to note that so is the number of people using Facebook on their mobile devices. Seth Fiegerman at Mashable writes that Zuckerberg’s claim that “Facebook had “become a mobile company” certainly has the numbers to prove it. Seth tells us that on its mobile services by the end of March, “Facebook had 751 million monthly active users” which is an impressive “54% increase from the same quarter a year ago.”
I have to admit, I underestimated the power of Facebook when it came to mobile use. For whatever reason I thought that it would take quite a few years for mobile to become the primary way to interact with social media and for businesses and agencies to reach customers through advertising. These numbers show that the shift to mobile for Facebook (and presumably a lot of other social media) is happening faster than some of us thought.
Time to Get Serious About Mobile
If these numbers aren’t convincing enough for you that mobile is the real deal (at least for Facebook), Sam Gustin has an interesting piece on TIME. He reminds us that “Facebook’s mobile revenue as a percentage of total revenue in the first quarter of 2012 was 0%.” Yes, that’s a zero. In just one year it has reached 30%.
Facebook has recognized that users are accessing all social media increasingly from mobile devices. Not only is that readily apparent in the US, but the rest of the world, especially the developing world are adopting technology rapidly. They are skipping the desktop approach and can get access to smartphones much easier.
Facebook’s decision to focus on mobile for the future is a strong one domestically as well as internationally. Maybe it’s time to get serious about a crafting a mobile strategy for your business, or at the very least, bringing new life into a current one.
Are you impressed with Facebook’s quarterly numbers? Do you think it will keep up for next quarter?
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