Not so long ago, there were worries regarding how Facebook could monetise its service. Despite having initial bursts of success, firstly through gaming and Zynga, concerns continued to surround the company’s advertising service, which was not being fully utilised.

Now, Facebook has seen its shares soar by 40% following increases in its mobile ad revenue, with profits in Q2 2013 totalling $333 million. Mobile advertising revenue alone was worth $655.6 million to the company in the three months from April to June, contributing more than 41% of Facebook’s total advertising revenue.

This growth is not set to slow either. eMarketer suggest more than $2 billion will be spent on mobile advertising on Facebook this year. It is further expected that Facebook will increase its share in the digital ad market to 5.04%, up from 4.11% in 2012.

The company are also expected to launch video ads on its news feed before the end of this year, showing Zuckerberg and co. are still intent on expanding Facebook’s advertising offering. This move seems logical, since video capabilities have now been integrated into Instagram. Bloomberg suggest that such a move could see Facebook make an additional $2.5 million a day in video advertising alone.

Clearly then, mobile is becoming integral to Facebook’s business. With video ads as well, Facebook’s digital ad market share can surely be expected to continue to grow.


Posted August 13, 2013

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