Last year around August, Facebook had started testing mobile advertisements for apps, and now the company has declared that around one-third of its advertisement revenue is coming from mobile ads. In its latest earnings release, Facebook said that out of $1.25 billion total advertising revenue, about $375 million came from ads installed on mobile platforms. By achieving these figures, the company has also made 22.5 percent quarter-over-quarter increase in revenue generated from mobile advertising.
Facebook profits from mobile ads
Facebook doesn’t own a mobile OS or build hardware, so it didn’t have any means except mobile ads to generate revenue. Biggies like Google and Apple usually take a cut from the app sales/in-app purchases and so on. Analysts have always had doubts about Facebook’s capability of generating revenue from mobile ads. In fact, some analysts felt that the company might just restrict its own growth with mobile ads.
Facebook is slowly trying to take the leap from desktop-based ads to mobile ads. It’s from August last year that the company stepped up its efforts towards generating revenue from mobile ads. Last month Google had declared that mobile ads had helped its Q1 revenue rise to $14 billion. This clearly indicates the slow yet steady shift of consumers from desktop to mobile. Analysts now say that with the growing mobile market in Asia and the increasing popularity of Facebook, the company can look forward to generating more profit from these regions.
In the recent months, the company has also been taking several measures to improve Facebook for mobile. It has given its news feeds and search feature a facelift, and also launched the new Facebook Home for Android users. Some analysts were envisaging stagnancy in the number of users, but reportedly there has been an increase in the number of users accessing Facebook everyday. On an average it is said to have risen by 8 percent (from December last year to March this year).
Publish date: May 2, 2013 9:47 am| Modified date: December 19, 2013 11:19 am