Tag: facebook mobile advertising

Mobile marketing earnings at Facebook look good

Facebook Mobile MarketingThe social network reported very strong revenues through their smartphone ads for Q1 2013.

Facebook reported, this week, that its mobile marketing generated powerful earnings through its smartphone ads throughout the first quarter of this year, producing a meaningful revenue for the company that has been seeing its ups and downs since it went public.

In fact, the social network giant posted its net income as $219 million for the first quarter.

That represents an increase of approximately 6 percent over the year before, as the first quarter in 2012 saw a net income of $205 million. The earnings that were reported excluding items from Facebook were $312 million. This is the equivalent to 12 cents per share.

That figure is considerably higher than the mobile marketing results that were seen in 2012.

Last year, including the mobile marketing at Facebook, the company reported a net income of $287 million. According to Thomson Reuters, this year’s achievements were off by a penny from the estimates that were made by Wall Street.

The latest CNBC report stated that the quarter the year earlier had reported mobile marketing revenue of $1.06 billion, and that this figure increased by 38 percent in this year’s quarter, when it reached $1.46 billion. That was able to beat the forecasts that had been made for the quarter, which had typically been for $1.44 billion.

It was Facebook’s complete advertising revenue, not just the mobile marketing earnings, which drew the most attention during the company’s announcement. They saw a 43 percent increase over the total that they had experienced at the same time the year before.

Mobile marketing revenue was estimated to have represented about 30 percent of the total advertising income that was earned by the social network within the quarter. Facebook has been investing exceptionally heavily in the smartphone and tablet channels in order to boost its earnings. This has become an especially large focus since it first went public. Now, investors are beginning to see the initial and ongoing results of these efforts and this broader focus for the advertising earning strategies that have been put into place and that continue to be developed.

Mobile marketing budget at Facebook is doubled over last quarter

mobile marketing facebook spendingThe leading social media network has increased its advertising spending limit twice over.

Facebook Inc. has just revealed that the mobile marketing budget for the next quarter will be double that of what it was during the previous quarter, as it aggressively moves forward into the smartphone and table environments.

The social network leader has stated that these devices are among its primary goals.

Though Facebook has been experiencing considerable growth through its mobile marketing, last quarter’s progress was not as great as some of the more aggressive estimates from Wall Street had predicted. The company has expressed that broadening its reach through smartphones and tablets will be a vital step as a rapidly growing percentage of its more than one billion global users start to access their profiles by way of these devices.

The company’s mobile marketing business overall grew at the fastest pace it has seen since last May.

It was in that month that the initial Facebook public offering occurred. This mobile marketing growth assisted the business in growing its revenues by 40 percent. Those achievements were considerably greater than the targets set by Wall Street.

Just ahead of this announcement, the shares of Facebook had been riding steadily at $31.24 (US). However, immediately following the release of the new doubled mobile marketing budget, the shares dropped 8 percent, only to recover after hours that day. According to an analyst from Raymond James, Aaron Kessler, “Overall solid quarter but maybe high expectations going into the quarter.”

Facebook, itself, has stated that 23 percent of its total ad revenue comes from its mobile marketing business. This represents a considerable increase over its 14 percent from the third quarter.

Kessler also pointed out that he, and some other investors, may have been expecting more substantial results from the mobile marketing business. He stated that “Mobile revenue was expected to be a little higher.”

Facebook’s finance chief, David Ebersman, was the one to express that the social network had “basically doubled” its mobile marketing ad revenue from the Q3 2012 to the last quarter. He pointed out that half a year ago, there was no revenue over that channel at all, but that “In the course of a pretty short period of time, we’ve dramatically ramped up our ability to monetize mobile.”