The owners, stockholders and employees?of Facebook?woke up glowing this morning. Their stocks are up 26%. But perhaps what’s most celebratory is their ad revenue.
Their ad revenue in mobile ads?nearly doubled?in just two quarters, from $373 million in Q1 2013?to $656 million in Q2 2013. Now, their total ad revenue?makes for 41% of all?Facebook revenue. Facebook?CFO David Ebersman credits News Feed ads that give great returns to advertisers. Mobile advertising is fairly new territory for Facebook. Up to last year,?they’ve been so heavily dependent on desktop ads, to the point where they’ve gotten criticized from all sides for it.?Another reason Facebook?mobile ads are growing?is because?Facebook users are growing. ?Daily active users have jumped 27% in the last year; monthly users increased 21% in the last?year (that number is now over a billion). But mobile users have jumped?a whopping 51% in the last year.
A-ha! I think I’m adding two plus two together. This is why they’ve struggled on Wall St. since they’ve got on the NYSE. Now that mobile users are increasing, now they’re investing in mobile?ads. And as annoying as some of these ads can be, it looks like they’re paying off. But will it last? Experts say Facebook stocks could go to and past $38. But will they stay up and increase and run with it after this breakthrough?