As Facebook's earnings report shows - mobile advertising has become an important revenue stream for this social media giant. Mobile advertising will lead to more mobile-tailing. Consumers are increasingly making more of their purchases online through their hand-held devices. Will you be a beneficiary or an onlooker of this impending tsunami of online spending? Shop.com is ready!
From Internet Retailer
July 23, 2014, 4:59 PM
Mobile ads now account for 57% of Facebook’s revenue
BY STEFANY ZAROBAN, Associate Director of Research
Mobile advertising revenue reached $1.66 billion during the second quarter, up more than 150% from Q2 last year.
Facebook’s efforts to attract advertisers and capitalize on consumers’ shift to mobile socializing seem to be paying off. The social network is now bringing in 62% of its ad revenue from mobile advertising, versus 41% this time last year, Facebook announced in its second quarter earnings release today.
That amounts to roughly $1.66 billion in mobile ad revenue during the quarter, a 151.5% increase compared with $0.66 billion a year ago. “We had a good second quarter,” CEO Mark Zuckerberg told analysts on a conference call today. “Our momentum was especially strong on mobile.”
Facebook executives also pointed to its efforts to make ads more relevant to users during the quarter, in addition to tweaks to the newsfeeds aimed at reducing users’ exposure to irrelevant or poor quality content.
“Our goal is to make ads as interesting as your friends’ content on Facebook,” Zuckerberg told analysts.
For the quarter ended June 30, 2014, Facebook reported:
From Internet Retailer
July 23, 2014, 4:59 PM
Mobile ads now account for 57% of Facebook’s revenue
BY STEFANY ZAROBAN, Associate Director of Research
Mobile advertising revenue reached $1.66 billion during the second quarter, up more than 150% from Q2 last year.
Facebook’s efforts to attract advertisers and capitalize on consumers’ shift to mobile socializing seem to be paying off. The social network is now bringing in 62% of its ad revenue from mobile advertising, versus 41% this time last year, Facebook announced in its second quarter earnings release today.
That amounts to roughly $1.66 billion in mobile ad revenue during the quarter, a 151.5% increase compared with $0.66 billion a year ago. “We had a good second quarter,” CEO Mark Zuckerberg told analysts on a conference call today. “Our momentum was especially strong on mobile.”
Facebook executives also pointed to its efforts to make ads more relevant to users during the quarter, in addition to tweaks to the newsfeeds aimed at reducing users’ exposure to irrelevant or poor quality content.
“Our goal is to make ads as interesting as your friends’ content on Facebook,” Zuckerberg told analysts.
For the quarter ended June 30, 2014, Facebook reported:
- $2.910 billion in total revenue during the quarter, a 60.5% increase from $1.813 billion in the same quarter of 2013.
- $2.68 billion in advertising revenue, a 67.5% increase compared with $1.60 billion last year.
- Mobile advertising revenue represented approximately 62% of all ad revenue during the quarter, up from 41%. That would indicate mobile ad revenue was approximately $1.66 billion during the quarter, a 151.5% increase compared with $0.66 billion a year ago.
- Revenue by user location is broken down as follows: U.S. and Canadian users comprised 44.9% of total revenue during the quarter versus 46.8% in the same quarter of the prior year. U.S. and Canadian users drove $1.308 billion in revenue, up 54.2% from $848 million.
European users drove $824 million in revenue, up 63.2% from $505 million. The region comprised 28.3% of revenue in Q2 compared with 27.9% last year.
Users in Asia drove $431 million in revenue, up 74.5% from $247 million. That’s approximately 14.8% of Facebook’s total revenue versus 13.6%.
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