Am loving the fact I was right…. but heck you don’t make money from being right.
You make money from taking action.
And action in the mobile space is what Facebook has taken…. and it looks like their mobile plans are coming to fruition as the company’s first-quarter earnings exceeded expectations—mainly because of strong mobile advertising performance. Read on…
“What we have seen has made us more confident we can do more with advertising over time,” Facebook CEO Mark Zuckerberg told analysts on an earnings call on Wednesday.
Mobile advertising generated $375 million in revenue in Q1, accounting for 30 percent of Facebook’s advertising revenue. Total revenue from advertising was $1.25 billion, representing 85 percent of total revenue and a 43 percent increase from the year-earlier period.
According to the New York Times, Zuckerberg said one of his top goals was to build “the best mobile product” and make money from it. Indeed, the social network recently turned off its internal website for a week, forcing employees to “think mobile first,” according to Fast Company. The change in mindset appears to be working: Facebook’s mobile monthly active users were 751 million as of March, up 54 percent year-over-year, according to the earnings report.
Industry analysts have been predicting that Facebook will drive mobile spending more and more over the coming years. EMarketer said mobile spending is set to skyrocket this year, in part because of spending on Facebook. The firm predicted that Facebook will net $954.9 million in mobile ad spending this year and seize nearly three in 10 dollars in the mobile display market.
Additionally, Facebook and Twitter have wrested control of the mobile display advertising market in the United States from ad networks like Google, according to IDC. Among mobile publishers selling display advertising, Facebook was No. 1 last year with $234 million in gross revenue, IDC said.
“We’re pleased with our progress in product development and with our financial results as well,” David Ebersman, Facebook’s CFO, told Bloomberg Businessweek. “Mobile has the opportunity to be huge for Facebook if we execute well and continue to attract mobile users and develop valuable mobile monetization products.”