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25
Jul
2014

Facebook Figures Out How to Make Money From Mobile Ads

by Bill

Facebook Figures Out How to Make Money From Mobile AdsWhile just a couple of years ago, the Facebook stock was being battered, the analysts proclaiming that there was no way for the firm to be a profitable venture, and the stock price sinking to just half of it’s IPO value, in the most recent earnings report, the Social Media giant appears to have found its magic bullet in terms of ad revenue: mobile advertising.

While the self-proclaimed experts announced to the world that Facebook was not in possession of a viable, profit-making business plan, the company turned its attention to serving up ads to smartphone users, and in it most recent earnings report stated that almost 400 million of its users access the social network exclusively from smartphones and tablets, accounting for nearly a third of their active users, and not only that, but that a full 62% of their ad revenue is now coming from mobile ads, up over two-thirds from last year. Good numbers to be sure, but more tellingly, mobile ad revenue alone this past quarter was nearly $500 million greater than the company’s total revenue two years ago.

With Facebook rapidly expanding outside of the developed markets of the United States, Canada and Europe, to markets where smartphones and tablets represent users’ primary means of accessing the internet, the increasing numbers are not that surprising. However contrary to analysts’ expectations, serving up ads in the mobile format has not alienated users and has become a significant source of revenue and profits, and Facebook stock is currently trading at all-time highs, double the IPO value of just two years ago.

We have witnessed the same pattern again and again over the years, analysts and experts declaring a business “dead,” only to be proven so wrong that it borders on the hilarious, whether it’s Zuckerberg or Jobs, men with a vision and the acumen to make their dreams our reality, defy the experts and make the world a better place, and make themselves and their investors significantly richer in the process.

If you truly know your business, your opinion should be paramount, naysayers be damned. Just know that NationalNet can handle all of your needs from colocation, managed hosting or dedicated hosting, so you can pursue your vision while we reliably and efficiently provide your business the cutting-edge technological support that is so critical today, and for all the tomorrows to come.

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