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Mobile marketing, mobile advertising, proximity is key to relations, conversion…; following is an article from one of our global mobile marketing experts:
Facebook Profits Soar On Mobile Ad Success
62% of Facebook’s advertising revenue now comes from mobile
Facebook’s position as the world’s favourite social network doesn’t seem to be in danger any time soon, following the release of it’s second quarter figures. The site is still enjoying rapid growth and healthy profits, with quarterly profit more than double what it was a year ago.
It’s not just financial profitability that’s on the up – Facebook’s findings show that its users are more engaged with the website than ever. Of the staggering 1.32 billion users worldwide, 63% of those are active on the site daily. Facebook’s competitors will no doubt be green with envy, so exactly what is the secret that has turned Facebook’s revenue model into such a success?
Of Facebook’s advertising earnings, 62% now comes from mobile– up from just 14% two years ago. One billion Facebook users access the site from a mobile device in any given month. Of these, about 399 million (or 30%) of the monthly active users access Facebook on mobile devices only. Facebook’s plans to invest heavily in its mobile advertising options are paying off as brands flock to the social network as their medium of choice for reaching consumers on the go.
Not one to rest on its laurels, Facebook is already looking past the success of mobile to find the next big thing. In a call to investors, Zuckerberg warned of heavy spending, without near-term return on investment, in new services like private messaging, virtual reality and search.
Keeping its current users active while gaining new ones is the key to Facebook’s rapid growth. There were 829 million daily active users (DAUs) on average for June of this year; an increase of 19% from last year. Included in this are the 654 million mobile DAUs – a figure which is up an impressive 39% from the same period last year. Facebook is a network with reach. More than half of its active users have more than 200 friends and, with likes and shares, likelihood that a product might be seen organically is increased.
The Bottom Line
The result of Facebook’s investment in its users and mobile? Revenue, of course. As this chart shows, Facebook’s profits have been rising steady, year on year. Even quarter one of this year, which took a slight hit, was up over $1 billion on the same period last year. Facebook’s continued prioritisation of its mobile ads platform is sure to draw in even more customers. Just recently, the company launched a mobile Ads Manager so that business owners could maintain their campaigns on the go.