Mobile advertising now accounts for 82% of revenue for Facebook

These last days have been full of activity on Wall Street due to the financial results of most companies in the world, where we have seen cases of Google, Microsoft and Apple, who have presented numbers below expectations, which it has caused nervousness among investors and a general fall in stocks.

But this scenario is not the same for Facebook, because the company Zuckerberg is outstripping forecasts reporting revenues of 5.380 billion dollars, which represents an increase of 52% over the same quarter last year, in addition to the base monthly active users increased by 15%, which makes the company one of the most profitable and best monetization profile in the market.

Facebook

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1,650 million users connect to Facebook

Analysts were predicting good numbers for the first quarter of Facebook, but it was a good surprise that all these forecasts have fallen below that shown by the company, a fact that has been well received by the market where it already has an increase up to 9% in the shares within hours after setting new highs.

However, there are points that have not been clarified by Facebook, as far participation Oculus within these numbers is unknown, plus Zuckerberg is announcing the creation of a new type of shares without voting rights, this in order that the famous CEO continues to have control of the company at all times, which of course has not been viewed favorably by investors.

Of the 1650 million users, 54% enter the social network via smartphone, of which894 million are daily; this represents an increase of nearly 9% over the previous quarter, which means that new users are still coming to Facebook, and also are increasingly using their smartphones.

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This has taken advantage of the company as advertising revenue increased 57% over the previous year, so the business of mobile advertising represents 82% of company revenues, something that might sound alarming, but if we see the case of Google who also depends on advertising and reported this quarter falls, then the case of Facebook is interesting.

Another point that is pending and has served to boost the company’s stock, plus forecasts for the next quarter is the fact that advertising will continue to increase, as these revenues represent only a part of users, so Facebook is thinking of new formats and ideas to reach a broader base of users, especially those who are connected daily.

As we see, the case of Facebook out of everything we have seen during this quarter, in addition to the future of the company is shown with definition and a good strategy, something they advanced in their last F8 conference, so we have to follow up future actions of the company, which until now has much to celebrate.

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