Thursday, November 8, 2012

Facebook 3Q Results & Mobile Revenue

Facebook's 3Q'12 earnings showed an improvement in the firm's mobile business.  According to Facebook, 60% of users access the site using a mobile device and are more engaged than average non-mobile users.

Facebook's advertising revenue increased by 36% from a year earlier.  14% of its advertising revenue was generated through mobile ads during the quarter, the first time Facebook disclosed its mobile ad revenue.  The article mentioned that Facebook, in particular, faces a challenge with mobile advertising since it needs to show ads on smaller mobile screens without overwhelming the user experience.

In fact, the CEO, Mark Zuckerberg, stated "I want to dispel this myth that Facebook can't make money on mobile...this may (have seemed) true earlier this year because we hadn't started trying yet but after just six months of ramping up our mobile ads business we're already at a point where 14% of our ad revenue this quarter is for mobile."

Source: http://finance.yahoo.com/news/facebook-posts-3q-loss-revenue-202449056.html

Alex Elawadi, 11/8/12

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