88% (85% Q1) of Facebook’s revenue is coming from advertisements. 41% (30% Q1) of that is already coming from mobile advertisements. There are over 1 million active advertisers according to Facebook’s latest report. The growth is driven significantly by local businesses.
Number of mobile users was growing about 50% quarter to quarter. Even though Facebook tells that they have worked heavily to create mobile the best experience, I believe the natural trend moving end users towards mobile is also effecting here.
It seems that Facebook is now also picking fruits from its’ earlier investments. Ad serving and measuring have been in focus already earlier. Acquisition of Atlas Advertising Suite has created ability to measure advertiser ROI on digital media. Also partnering with companies like Datalogix, Epsilon, Acxiom, and BlueKai has made it possible for marketers to incorporate purchasing data outside Facebook enabling delivery of more relevant ads to end users.
Interesting thing here is that advertisers seem more and more willing to place their money into this service, even in situation when many markets report declining advertising revenues. Obviously Facebook has done something right here. After introduction of advertiser ROI calculations it remains to be seen, if end users are reacting positively also to his increase of mobile advertisements. Surely also relevance of ads will impact on end user reaction too.
Partnered with Datalogix, Epsilon, Acxiom, and BlueKai to enable marketers to incorporate off-Facebook