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Facebook Sees Success from Mobile Ads as Detailed on Q3 Earnings

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On Wednesday, Facebook gave the public a look at its 2016 third-quarter earnings that garnered the social media giant a revenue of $7.1 billion; exceeding analysts expectations of $6.92 billion. The report also showed the company earning $1.09 per share compared to the expected 97 cents.

This is not the first time Facebook was able to beat expectations made by experts in Wall Street. As a matter of fact, this is already the 14th consecutive quarter for the company to exceed expectations. The only time Facebook missed its earnings was when it went public back in 2012. This year's earnings has resulted to Facebook's stock (FB) to go up to 22% compared to the 17% it had in the past year.

Facebook attributes the success to its mobile advertising venue. This sector alone earned the company $5.7 billion in the third quarter, which exceeds Facebook's entire revenue over a year ago according to Re/code. The company says that mobile ads make up for 84% of their entire $6.8 billion ad revenue in the third quarter. And according to Facebook, ad revenue increased in every geographical region, especially in the US and Canada. Most of the success earned by mobile ads is due to the video ads posted on the social media website.

In addition to its mobile revenue, Facebook has started to see success through Instagram advertisements. With over 500 million monthly active users, 300 million of which are daily users, it is only natural for the website to become a thriving avenue for advertisements. Compared with the 4 million advertisers on Facebook, Instagram has 500,000 advertisers. But while the company has not yet break out Instagram's revenue, a recent report from Credit Suisse says that the ads on the website have been improving. The report also suggests that Instagram may rake in a total of $3.2 billion of revenue by the end of this year.

It's been 12 years since Facebook was founded (4 since they hit the public market). And despite this, the company continues to grow its user count every quarter; proving they deserve the moniker as a social media giant. As of press time, the company has a total of 1.78 billion monthly active users; an increase from last quarter's 1.71 billion. Out of the number, 1.66 billion access the website on their mobile device.

For a company that classifies itself as "a platform for all ideas", it's easy to see just how far it can go in the coming years. In this month alone, the company shared that they have started testing out a shopping function on Instagram so users can simply tap on a retail item so they can purchase it from the company directly. Among the pilot brands testing the function are Warby Parker and Levi's. According to an Instagram executive, the function "was launched to reflect the way people are already using the app." Just a few months ago, Instagram started offering business profiles. A total of 1.5 million businesses have already started to take advantage of these.


Source: Fierce Wireless, Yahoo

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10 comments:

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  1. Who cares Facebook?

    ReplyDelete
    Replies
    1. shareholders, management, employees, etc.

      Delete
  2. EyeAmNoLongerInfectedNovember 4, 2016 at 2:52 AM

    Prepaid phone a little sluggish?
    What's the first APP to get rid of for improved performance?
    facebook...
    FaceBook...
    FACEBOOK! GET IT OUTTA THERE! (Don't be hatin' now).

    Article was very informative though. Thank You.

    ReplyDelete
  3. This is prepaid phone news. I couldn't care less about Facebook. Wish they would just go away tbh.

    ReplyDelete
  4. Whatsapp (owned by Facebook) had offered zero rating via Freedompop. I have not used whatsapp in a while after I find out they upload your contacts without being explicit. But there may be ways around that. And they are working on video chats. With free data with freedompop, that may be interesting.

    ReplyDelete
  5. I am the only person I know that does not have a fb acct. Not planning to get one either.

    ReplyDelete
    Replies
    1. Anonymous @ 4:34..you don't know me, but I don't have one either. And, we're surviving! Lol

      Delete
    2. I'm right there with you :) .

      Delete
  6. My account is not very active but because my kids are doing all sorts of fb, instagram, I need to know a little about it.

    ReplyDelete
  7. Don't use their app. Just use their mobile site.

    ReplyDelete
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