Facebook Mobile Now 23% Of Ad Revenue
By: BusinessInformation24.blogspot.com
By: BusinessInformation24.blogspot.com
Moving the company to focus on mobile was a “challenge,” the
Facebook CEO said in a conference call with analysts after FB reported Q4 earnings. That’s because the company’s apps were
not as high in quality as he wanted and Facebook didn’t have mobile ads. That’s
now changed, he said. Mobile ad
revenue is 23% of total ad revenue, up from 14% in the prior quarter. “Today
there’s no argument Facebook is a mobile company. Mark Zuckerberg says.
The company has changed its development process to be faster so
that it now ships changes to apps on a monthly cycle. Now Facebook company is focusing on “new
mobile first experiences, Mark Zuckerberg
says. He didn’t detail what those new experiences would be. But the company
recently launched Poke, a photo and video apps.
Facebook is not building a phone, Mark Zuckerberg
said once again. If the company sold 10 million phones that would be just 1%
of Facebook users, which makes no sense, he said. Instead, Facebook
wants to instead build good access to its services across all mobile devices.
“It should be integrated across all the different devices. That’s what
we’re going to focus on.
Facebook is intent on investing in new products
for the future, such as Graph Search, Mark Zuckerberg said. As a result, expenses are
increasing and headcount has increased 44% year-over-year to 4,600.
BusinessInformation24.blogspot.com gave more detail on Facebook’s
various revenue and advertising products:
Custom audiences: This product enables advertisers
to upload user lists and show ads to exactly the right people they want to
target. Retailers can sell some ads to certain customers interested in some
products and sell other ads to others who buy, say, beauty products. This isn’t
a stand-alone product but used with other products, for example with Facebook
Offers.
FB Exchange: This
launched just in September but by December it was doing 1 billion impressions
daily. With one client, this drives 36% more conversions than retargeting
elsewhere, she says.
Local Businesses: This
nearly doubled since the beginning of 2012, due to the Promoted Posts product
for small businesses. About 500,000 pages have purchased Promoted Posts.
App install ads: They’re
being used by 20% of the top 100 grossing iOS apps. This is not just for games.
Also big companies in retail, travel and financial services can get help to
move to mobile with these ads.
Mobile ads: About 65% of advertisers now run ads in News
Feed, which run in desktop and mobile. Ads in News Feed see higher click
through rates and lower costs per conversion. They also drive 8x more
incremental sales than ads on the right hand side.
Revenue from new
products such as
Promoted Posts as well as Gifts was less than $5 million in the quarter.
On ads in the News Feed, FB
(facebook) recently made improvements to its News Feed, and the company saw 50%
increase in Likes, comments and other engagement. But when the company added
ads in the News Feed that caused a 2% offset, so the net change was very
positive, Mark Zuckerberg said.
Interesting. “Android is a very dynamic and open
platform, as long as Google keeps it that way. Even though our relationship
isn’t one where the companies really talk we are able to do a bunch of things
and some build some great experiences.”
Mark Zuckerberg then cited
positives of Android, such as the ability to send messages on Android, which
iOS does not allow app to do. But Mark Zuckerberg’s
subtle dig at Google was telling: He also admitted the two companies’ rivalry in saying that they don’t talk to one another. “As long as Google keeps it that way was how
he described Google’s open platform.
Blogging : BusinessInformation24.blogspot.com
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