Facebook Continues Moneymaking Trend: Proﬁts Surge As Mobile Business Thrives.
It seems Facebook is leading in the most current trends that rock the social media world right now: how to make money selling mobile ads.
The popular social network recorded $791 million in profit in the second quarter, which is more than twice the amount it earned in the same quarter last year: revenue was up 61%, to $2.91 billion. This exceeded the predictions and expectations of analysts and shot up the stock with 5% in after- hours trading from the market close price of $71.29.
Facebook founder and chief executive, Mark Zukerberg said “We had a very profitable second quarter, our communities have continued to witness rapid growths, and we can see several opportunities to connect with the rest of the world ahead of us.
What advantage does Facebook have? As we all know, the company has reams of data which make the ads they show on users mobile devices fit the specific needs and preferences of the users. They run such massive services that even after several years in existence; almost a billion web users make use of it daily. More of these people log in using their mobile devices.
The leap in the number f mobile users used to give Facebook lots of concern. It was a major concern when it decided to make their first public offer in 2012. This is because many tech and media companies have discovered that it is make money from small mobile ads than from desktop ads.
Such concerns inspired Facebook to focus on building its mobile ads advantage in 2012, an area long dominated by Google. In early 2012, Facebook couldn’t boast of any mobile ad revenue. By the end of that same year, it accounted for about 5.4% of the global mobile ad market, according to eMarketer, an ad analysis firm. And it has grown consistently.
According to analysts, it will take about 21.7 % of all mobile ad spending this year.
Facebook has made more significant inroads into the mobile ad market, and now makes most of its thoughts its smartphones and tablets ads. It now pays attention to how best to reach more people even when they are offline. Early this month, they announced that they have made significant progress in driving people directly from Facebook apps to other apps and back to Facebook. Facebook has equally started incorporating relevant information from other sites their users visit outside their network into their ad platform. Increasing their large collection of data as well as tailoring ads more carefully to users. The company has found itself in troubled waters in the past in pursuit of that data. They recently ran into some problems with users when researchers revealed that they had conducted mood experiment on users.
But this has in no way affected the number of users that sign up with the social media daily. According to Facebook, their users have risen to a massive 1.32 billion users who log in at least once every month from different parts of the world. It has equally been reported that many of the users have made Facebook a daily habit while some are so addicted that they can’t let an hour go by without visiting the Facebook website. About 829 million people visit the social media site daily, about 19% of last year’s statistics.