Latest News: Mobile generates 14pc of Facebook’s Q3 advertising revenue
In a recent study, it has been revealed that, Facebook’s mobile customer base continues to grow quickly and was up 61 percent in the third quarter for a total of 604 million monthly active users. However, there is uncertainty in the market about Facebook’s ability to monetize mobile effectively, CEO Mark Zuckerberg underscored the company’s focus on mobile during a conference call with analysts to discuss the results. The social network has acknowledged that mobile will be crucial to its future success.
Mr. Zuckerberg said in the conference call with analysts that, “I want to dispel this myth that Facebook can’t make money on mobile.” He also added that, “This may have seemed true earlier this year because we hadn’t starting trying yet. Today, after just six months of ramping up our mobile ad business, we are already at a point where 14 percent of our ad revenue this quarter is coming from mobile – that is about $150 million and we are just getting started.” Mr. Zuckerberg also pointed to three trends that are coming together to drive Facebook’s opportunities in mobile. Firstly, Facebook expects to be able to reach more people via mobile than on desktop as smartphones begin to outnumber desktop computers. Facebook is already the most widely downloaded application on most smartphone platforms, making it well positioned to take advantage of the growth in smartphones. Secondly, people on mobile use Facebook more often than desktop users. Someone who accesses Facebook on desktop has only a 40 percent chance of using Facebook on a given day while someone who uses mobile has a 70 percent chance of engaging with the social network on a given day, per Mr. Zuckerberg. Apart from that, he also reported that since Facebook updated its iOS app, it has seen an 80 percent increase in News Feed downloads and a 20 percent increase in iOS engagement in terms of likes and comments. Mr. Zuckerberg also proclaimed that, “People on mobile are already more engaged than people on desktop and there is a lot more we can do to drive deeper engagement as well.” He also believes that Facebook will be able to monetize better per amount of time spend on mobile than on desktop.