Facebook's Growth Is Entirely Fueled by Mobile Ads
Facebook's strong mobile advertising business helped the social network to beat expectations on both the top and the bottom line in its third quarter earnings report. Revenue climbed 41 percent to $4.5 billion as net income grew by 11 percent to reach $896 million. The profit increase could have been even bigger, had Facebook not doubled its R&D expenditure compared to last year's third quarter.
When Facebook started selling mobile advertising in 2012, not even the keenest optimists could have predicted how successful this decision would turn out. In each of the past eleven quarters, mobile ads have accounted for more then 90% of Facebook's revenue growth. In the first nine months of 2015, all of the company's growth came from advertising on tablets and smartphones. Mobile ad revenue now accounts for 78 percent of Facebook's advertising revenue and 74 percent of total revenue.
Considering the fact that Facebook has 894 million mobile users on an average day, it is no surprise that its mobile advertising efforts are successful. The pace at which mobile ads have become the single driver of the company's growth is noteworthy though.
- Facebook: worldwide quarterly revenue 2010-2016, by segmentFacebook: worldwide quarterly revenue 2010-2016, by segment
- Facebook: worldwide quarterly revenue 2011-2016Facebook: worldwide quarterly revenue 2011-2016
- Facebook: annual revenue 2009-2015, by segmentFacebook: annual revenue 2009-2015, by segment
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- Worldwide weekend box office revenue - August 19 to 21, 2016Worldwide weekend box office revenue - August 19 to 21, 2016
- Smartphone sales revenue worldwide 2013-2016Smartphone sales revenue worldwide 2013-2016
- Global smartphone sales value by region 2013-2016Global smartphone sales value by region 2013-2016
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