Why Are Advertisers Flocking to Facebook?
While some worried about Facebook’s (NASDAQ:FB) ability to transition to mobile after its initial public offering in 2012, the company has not only weathered the shift but is currently thriving in the mobile sphere. Facebook’s mobile users increased by 18 percent in the U.S. and 22 percent in Britain for the month of June, according to a statement cited by Reuters.
That growth is especially important because ad revenue in general tends to drop during the summer months, when people are on vacation and not attached to their computer screens. Facebook’s mobile app makes it easy for users to keep in contact with each other and remain connected to mobile advertising, even while on holiday.
All those active mobile users are leading to serious revenue for the world’s biggest social network, as advertisers are desperate to reach people during summer vacations. Mobile ad revenue accounted for 30 percent of Facebook’s overall revenue during the first quarter of the year.
While Facebook has done a great job of keeping people engaged with their profiles via mobile, advertisers have had a difficult time creating effective ads for the medium. Mobile phones have small screens, and people use their phones to check Facebook multiple times per day instead of leaving the site open on a computer browser. Advertisers need to figure out how to target and keep the attention of smartphone users.
The increase in mobile usage is especially important in the U.K. and across European, where extended summer vacations are more common than in the U.S. According to data cited by the U.K.’s Telegraph, mobile users of Facebook check the site between 10 and 15 times per day and send 10 billion messages through Facebook Messenger per day.
The company still makes the majority of its money from traditional Web usage, and mobile advertising will only grow in importance for Facebook’s revenue. So far, CEO Mark Zuckerberg has been able to gracefully guide the company through the shift to mobile, and more success in the mobile sphere is expected.
Google’s (NASDAQ:GOOG) YouTube, Pandora Media Inc. (NYSE:P), and Twitter follow Facebook as the largest mobile ad publishers. Facebook will post its second-quarter earnings Wednesday, and analysts are expecting the site’s mobile revenue to show even more growth than in the last quarter.
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