Facebook released their earnings today, outperforming all expectations. Their staggering uptick wasn’t an fluke, either. In parsing the numbers, it’s clear that Facebook not only gets what everyone has known for some time, they’ve capitalized on it, too.
Not long ago — though forever in the world of technology — Facebook dedicated themselves a mobile-first company. they started building great apps like Paper, dropped weird oddities like Poke, and maybe more importantly to their bottom line — began a mobile advertising business.
Facebook’s mobile advertising revenue comprised 62% of their total advertising income. Total revenue was up 61% to $2.91 billion. As you can imagine, those numbers are very much intertwined.
Research firm EMarketer estimates Facebook to have about 18% of the mobile advertising grab; well behind Google, but a big leap for the social giant. In 2012, they had about 9% of the pie. In 2012, Google is believed to have controlled half the mobile ad space. this year, EMarketer expects that to fall 10%. As you can imagine, those numbers are very much intertwined.
As Vindu Goel of The New York Times pointed out via Twitter, Facebook users are now worth about $2.24 each in revenue. Last year that number was $1.60. Those users are also visiting Facebook more, as both the daily and monthly mobile active user metrics are up. Versus 2012, daily and monthly mobile active users have roughly doubled. In that time, revenue has more than doubled, and their mobile ad revenue grab has doubled.
As you can imagine, those numbers are very much intertwined. Better apps, more engagement, and increased revenue. We may have scoffed at Facebook when their IPO went bust, but who’s laughing now?