Part of the strategy of large companies in the Internet world is launching into the mobile market. Smartphones and tablets are becoming more mainstream, consumers spend more time with them and companies are therefore increasingly interested in using them as a key to reach them. Therefore, Internet companies are trying to position themselves in the market for mobile ads. And some are faring quite well: Facebook is the one who is becoming the most serious threat to Google in the field of mobile advertising and who just released financial results that point that goes in the right direction in this area.
The social network has already achieved quite remarkable strengthening of the volume of consumers who access their services from mobile devices. According to data just presented, associated with the last quarter of 2014, the social network has 500 million users accessing via mobile and only from that device. Given that total has 1.190 million active users, the number of mobile only consumers is quite striking. Arguably little less than half of its users access through one of those screens.
Mobile social network users have not stopped growing well. Annually, the figure for the last quarter of 2014 is 26% higher than the last quarter of 2013, although the upward trend has been maintained constant since. The figures for each of the quarters are always higher than the previous quarter.
But growth is not the number of users is not the only good news for Facebook associated with the mobile. The firm has seen a rise in advertising revenue and in her mobile ads is a more important part.
In total, during the quarter, Facebook has made 3,590 million dollars in advertising. Of that total, 69% comes from the sale of advertising for mobile devices. And that percentage means two things. One is that most of the advertising revenue from Facebook already come from those devices .And, two, that Facebook has closed the quarter with 2.500 million associated with the mobile billing, representing an increase of 53% compared to what was achieved in the same quarter last year.
He is making more money selling fewer
But the mobile metric is not the only positive for the social network which presented its financial results. The company has also achieved a situation which is the usual: although it is selling fewer ads, is gaining much more with them. Facebook ads are becoming more expensive. A study of Kenshoo noted that Facebook ads are now 7 times more expensive than a year ago. The latest official figures from the company have more accurate data to the trend.
According to the data of their last performance, prices ads on Facebook are now 335% higher (data for the fourth quarter) than they were in the same quarter in the previous year. Selling ads are also more expensive lower volume of selling a year ago the number of ads on the social network has fallen by 65% for the year.
The strategy Facebook has continued in advertising is different than usual in the media. Facebook has decided to reduce to not lose focus. The social network has gone down the number of ads that consumers receive in the desktop version (as consumers began to not see them) but rather to compensate by increasing the ads in the feed, the social network has also limited impacts advertising they receive in the news feed. That is, Facebook users see fewer ads on both the side and inside the feed, which has made advertising less invisible. During the period, do not Forget, Facebook has upped the amount you reported for media advertising each user.
Mark Zuckerberg, the CEO of the firm, has argued that have focused on boosting quality in ads rather than the amount thereof. This strategy is giving results.