7/23/14

Mobile ads now account for 57% of Facebook’s revenue

Mobile advertising revenue reached $1.66 billion during the second quarter, up more than 150% from Q2 last year.

Stefany Zaroban , Associate Director of Research

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:

Zuckerberg and Sheryl Sandberg, chief operating officer, said the company remains focused on three main priorities: capitalizing on consumers’ shift to mobile, growing the number of marketers on Facebook and improving ad products.

For the first half of the year, Facebook also reported:

Sandberg shed additional light on Facebook’s recent launch of a Buy button on the social network, and aimed to clear up a misconception that Facebook would start selling products of its own in the near future.

Earlier this month, the social network launched a limited test in the U.S. only of a button placed on marketers’ Facebook posts, she said. The button allows users to buy those marketers’ products directly from Facebook. “I think commerce is really important and a growing importance to our business,” Sandberg told analysts. “But I don’t think people should confuse that with Facebook selling directly. It’s more important that we are driving commerce.”

Topics:

e-commerce, Facebook, marketing, mobile advertising, mobile commerce, Q2 2014 earnings, social media, social media advertising

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