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. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Apple/Mac
DDoS Protection Powered By Verisign
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

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"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!



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Apple/Mac
1.   Apple Stock Soars Ahead of iPhone 6
2.   Popular Mailbox App Comes to Mac
3.   Apple Opens China iCloud Data Center
4.   Android Crushing Smartphone Rivals
5.   Apple Bans Toxic Factory Chemicals


advertisement
New App To Manage Time Better
Helping to organize your busy life.
Average Rating:
Apple Stock Soars Ahead of iPhone 6
New products generating lots of buzz.
Average Rating:
Popular Mailbox App Comes to Mac
Takes to-do list approach to the inbox.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

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 | CRM Systems | 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

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.