Mobile Ads the key to Facebook Success
Facebook announced last week that for the first time the amount of mobile users has exceeded desktop users. Out of Facebook’s 1.06 billion active users as of December 31st, 680 million of those users connected via a mobile device which is a 57% increase year over year.
Mobile is key to Facebook’s future success, said Mark Zuckerberg, Facebook founder and CEO. “In 2012 we connected over a billion people and became a mobile company,” he said.
Facebook’s success is largely driven by advertising revenue, in which mobile ads accounted for 23% of Facebook’s $1.6 billion in advertising revenue in 2012’s Q4, raking in $306 million, up 101% from Q3. Facebook has made mobile its primary focus over the past year and plans to roll out additional ad formats.
For the full 2012 year, Facebook reported $5.1 billion in revenue, up 37% from 2011 and $538 million in profits compared to $1.8 billion in 2011. The drop in profits is largely due to sock-based compensation in Q2.
Facebook now has a responsibility to keep investors happy and continue to increase revenues while engineering new ways to deliver ads to Facebook users without sacrificing user experience on the #1 social network.
More and more organizations are harnessing the power of social media and leveraging Facebook’s various advertising options to reach new users, reconnect with old ones and increase their brand awareness. Now that Facebook ads are available on mobile devices, a whole new realm of possibilities opens to reach potential new customers.