Facebook Continues to Earn Revenue Through Mobile Ads
Over the course of the last six straight quarters, Facebook has measured a large portion of its success to their mobile app and advertisements, despite expressed concerns three years ago that the company would never earn revenue from mobile means, according to an article recently completed by Ad Age. The concerns about earning revenue from mobile appear to now be completely unfounded.
In the third quarter of 2014, sixty six percent of Facebook’s revenue came from mobile means; this figure, which equates to just shy of two billion dollars, is up from sixty two percent in the second quarter. In addition, it is a one hundred and twenty two percent jump in mobile revenue from a year ago. Furthermore, more of Facebook’s audience continues to check the social media site through their smartphones, tablets or other devices. During the third quarter, one and a third billion people checked Facebook; of this population, just over one billion did so from a mobile device. Taking this a step further, findings also show that four hundred and fifty six million of this population is choosing to check Facebook strictly from a device.
In terms of how this success is affecting Facebook’s revenue, the statistics are clear. For the sixth straight quarter, Facebook’s revenue fro advertising has grown by more than sixty percent, over the same period of the year prior. For the third quarter, this figure climbed by sixty four percent, to reach just shy of three billion dollars.
The issue becomes closing the gap with Facebook’s supposed rival—Google. Despite the fact that the two are often thought of as rivals in digital advertising dollars, Google made nearly five times as much from ads in the third quarter, when compared to Facebook’s revenue. While Facebook continues to strive to close this gap by spending much of 2014 dedicated to investing in revenue producing advertisements, the gap still continues to exist. This is due to a disconnect between where Facebook earns its money, and where its users actually reside. One year ago, the United States, Canada and Europe accounted for seventy three percent of Facebook’s ad revenue; however, only forty percent of this population checked in on Facebook each month. Now, a year later, the divide has grown quite a bit; the regions still account for seventy three percent of Facebook’s ad revenue, but only thirty seven percent of these residents account for the websites monthly audience.
This has created an international divide that makes it very difficult for Facebook to keep up with Google. Google can claim thirty two percent of all global ad spending over the course of this year; Facebook can only declare a meager eight percent. However, despite the steep differences in figures, Facebook is continuing to work on a solution, as it works to modify its ad products for marketers, in the hopes of better reaching international users.