While competing social networks seek ways to monetize their mobile platforms, Facebook continues to rake in mobile ad revenue. According to its latest figures, Facebook mobile ads accounted for 41 percent of the company’s total revenues, surpassing expectations by $200 million in the second quarter.
Advertising is critical to Facebook’s financial success: The company gets 88 percent of all revenues from ads, whether mobile-based or through other media. Mobile advertising is gaining traction with businesses just as Facebook is pouring its resources into this revenue stream.
As a recent Mashable gallery notes, Facebook’s history on the mobile front hasn’t always been a hit. As mobile devices evolved and the social network tried to keep pace, some of the company’s initiatives flopped. But since it shifted its strategy to a mobile-first approach in 2012, smartphones and tablets have become a valuable domain for Facebook, leaving other companies wondering what triggered such rapid success.
Breaking Down Facebook’s Mobile Strategy
Before its latest mobile ad innovations were released, Facebook benefited from consistent updates and changes to its social platform, which habituated users to continual change. This paid off when the company released news-feed ads and an option to promote posts.
Introducing these features essentially created two new advertising properties that worked on Facebook mobile properties just as well as they did on traditional platforms. Furthermore, these innovations didn’t inhibit the user experience, which in turn allowed Facebook mobile adoption to increase.
Application developers have been a huge part of Facebook’s success — with these entities promoting their mobile apps through the mobile news feed offered on Facebook, they get the benefit of refined audience-targeting and improved ad relevance.
And Facebook isn’t done upgrading its mobile space. The company is testing a new mobile payment option that could be utilized through Facebook accounts, and it is looking to forge partnerships that increase adoption of this new service. With a mobile audience of more than 800 million and plenty of mobile momentum at its back, Facebook is poised to continue growing its mobile revenue opportunities.
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