According to a recent earnings report released by the company, Facebook’s mobile advertising business experienced tremendous growth in the second quarter, rising by over 50 percent. This is welcome news for the social media giant, which is trying to convince a wide range of online advertisers that it’s an optimal platform for their needs.
As an increasing number of social media users access their favorite services through mobile devices like smartphones and tablets, many social networking services have seen their mobile ad revenues soar and Facebook is no exception. The company’s Q2 report shows that mobile ad revenue now accounts for 87 percent of the social networking service’s total advertising revenue.
The number of Internet users logging onto Facebook on a regular basis has also grown. According to the latest figures, Facebook had just over 2 billion active users who logged into their account at least once per month as of the end of June 2017. This represents a 17 percent year-over-year increase when compared to the numbers for 2016.
During a conference call with industry analysts, Facebook CEO Mark Zuckerberg has given some details as to the company’s future plans. He said that Facebook is looking for ways to grow its revenue by monetizing WhatsApp, a popular mobile messaging platform, as well as Instagram, a photo-sharing service used by over 700 million people from all over the world. Both online services were acquired by Facebook after they attracted hundreds of millions of active users.
In addition to increasing revenues from these two platforms, Facebook will also soon make its entry in the world of online video. The Facebook TV service is expected to be launched in mid-August, carrying original scripted content that will be supported by ads. The service is expected to fall somewhere in the middle between Netflix and YouTube, as far as quality levels are concerned. The inclusion of scripted shows on its social platform represents a significant change for a company that has previously relied heavily on user-generated content.
Growth in mobile ad revenue and the company’s solid plans for future growth are believed to be the driving factor behind Facebook’s soaring stock price. On August 2, 2017, their shares were trading at close to $170. Since the new year, Facebook’s stock price has climbed by close to 44 percent.