Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Personal Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Did Facebook Just Prove the Case for Mobile Ads?
Did Facebook Just Prove the Case for Mobile Ads?

By Jennifer LeClaire
July 25, 2013 9:57AM

    Bookmark and Share
"You can argue that Facebook's mobile success is more broadly reflective of industry trends and marketer adoption of mobile advertising. But Facebook also has the ability to show more or fewer ads in the mobile newsfeed so it has control over mobile ad revenues in a way that few other publishers do," said analyst Greg Sterling.
 



Facebook is proving some of its skeptics wrong with its latest earnings report, but the numbers may also prove the points of marketing gurus who are heralding the value of mobile advertising. The social networking giant's second quarter results have the tech industry abuzz.

Revenue for the second quarter of 2013 totaled $1.81 billion, an increase of 53 percent, compared with $1.18 billion in the second quarter of 2012. Revenue from advertising was $1.60 billion, representing 88% of total revenue and a 61% increase from the same quarter last year. And mobile advertising revenue represented about 41% of that figure.

"We've made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile," said Mark Zuckerberg, Facebook founder and CEO. "The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future."

Is Facebook an Anomaly?

We turned to Greg Sterling, principal analyst at Sterling Market Intelligence, to get his take on how this translates to the broader mobile advertising equation. He told us this is partly specific to Facebook and it partly represents acceptance and adoption of mobile.

"Facebook is something of a unique case, not unlike Google," Sterling said. "Marketers' campaigns can appear both on the PC and in mobile without any modification -- so mobile advertising requires less work on Facebook."

What's more, he continued, consumer usage data reflect that Facebook is the dominant mobile app in terms of time spent. This provides additional credibility that mobile ad networks and exchanges don't have.

"You can argue that Facebook's mobile success is more broadly reflective of industry trends and marketer adoption of mobile advertising. However there are unique elements about Facebook that make it something of an outlier," Sterling noted. "Facebook also has the ability to show more or fewer ads in the mobile newsfeed so it has control over mobile ad revenues in a way that few other publishers do."

Facebook Poised for More Ad Growth

For its part, Facebook is rocking and rolling -- and is likely to attract even more advertisers in the quarters ahead. The social networking site posted 669 million daily active users, on average. That's a 27 percent year-over-year increase. Monthly active users rose to 1.15 billion, a 21 percent year-over-year increase. And mobile monthly active users were 819 million, a 51 percent year-over-year increase.

On the flip side, Facebook surpassed 1 million active advertisers on Facebook. The company credits significant growth in local business advertising for part of that number.

Facebook is positioning for future growth. During the quarter, Facebook launched products including Verified Pages, hashtags and embedded posts to help people on Facebook connect with their friends about what's taking place all over the world. And Instagram could be the next advertising bet as the company beefed up engagement by adding Video for Instagram, which saw 5 million videos uploaded in the first 24 hours.
 

Tell Us What You Think
Comment:

Name:

Ainsley:

Posted: 2013-07-26 @ 12:30pm PT
No... Facebook only proved that it has learned well from Airpush, Millennial Media, Tapjoy and a handful of other mobile ad networks that have been showing developers and advertisers for much longer than FB has how to innovate, target, and make the mobile ad experience profitable and effective for devs/advertisers and acceptable if not surprisingly beneficial to mobile users. I'm so tired of FB being propped up as a mobile advertising innovator! It's not!



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Personal Tech
1.   Amazon 3D Smartphone Pics Leaked
2.   Why Netflix Got So Blazingly Fast
3.   Study: Samsung Phone vs. iPhone
4.   Criterion Extends Hulu Streaming Deal
5.   iPad Hacker Conviction Overturned


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:
Why Netflix Got So Blazingly Fast
Comcast deal is paying off for users.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 
Canadian Teen Arrested for Heartbleed Hack
One week after the OpenSSL Heartbleed vulnerability was unveiled, Canadian authorities have made the first arrest -- a London, Ontario teenager -- connected to exploiting the security hole.
 
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Google Releases Chrome Remote Desktop App for Android
You're out on a sales call, and use your Android mobile device to grab a file you have back at the office on your desktop. That's a bit easier now with Google's Chrome Remote Desktop app for Android.
 
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.