Out of the blue, Facebook Inc. surprised with a significant increase in mobile advertising revenue. The social media giant has started bearing fruits from mobile advertising, making its investors less worried about the future of the company. Indeed, the latest figured showed that Facebook Inc. learned how to make money out of mobile ads.
Facebook Q1 driven on mobile ads
On the 1st of May, Facebook Inc. reported data on the first quarter, indicating that its sales for the period climbed as much as 38 percent to approximately $1.46 billion, beating analysts’ estimates. The social giant’s profits amounted to around $219 million.
Certainly, the astonishing increase in mobile revenues was a main driver of surprisingly good results recorded by Facebook Inc. in the first quarter. According to data released by the company, mobile advertising generated staggering 30 percent of Facebook Inc.’s advertising revenue in the given period. This was a significant improvement, compared to 23 percent recorded in the last quarter of 2012.
The company underlined that its mobile ads revenue climbed due to the fact that also mobile monthly users jumped staggering 54 percent to more than 750 million on a year-on-year basis. The report indicated that the Facebook’s advertising revenue accounted for approximately $1.25 billion.
Without a doubt, the significant increase in mobile advertising should have a positive effect on the company’s stock price, which is substantially below the IPO price as shareholders have been much concerned about the Facebook Inc.’s ability of adjusting to the new trends in the market and generating money from the growing number of users of mobile devices. All these concerns arose as analysts and investors were not convinced whether Facebook Inc. would learn how to sell advertising space on mobile devices, including smartphones and mobiles, thereby sending the company’s share price down.
After Facebook Inc. released its data on the first quarter showing that it met a challenge, analysts and investors are more optimistic about the future of the social giant and its transition skills.
Steps taken to stand out
The fact is that Facebook Inc. is all the time evolving as it wants to meet a challenge. It wants to keep up with all new trends blooming around, thus it has launched new software for smartphones and updated News Feed. In addition, the social media giant has not forgotten about advertising as it has also added new advertising products. And it seems that all its recent steps have started bearing fruits, taking into account the latest figures released by Facebook Inc.
Analysts note that progress is unbelievable and it seems that Facebook Inc. has developed learning and adjusting skills which are inevitable in the today’s Internet world. All these new products aimed at luring users and encouraging them to spend more time using Facebook on their mobile devices are indeed working, making the social giant an excellent example of the company with a vision of the future. Investments are indeed inevitable if any company wants to develop and earn. Therefore the company should be, without a doubt, satisfied with the fact that the number of mobile users climbed as much as 54 percent to more than 750 million. Yet great leaders do not rest on their laurels as they aim higher.
