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BizReport : Social Marketing : July 24, 2013

Facebook stock boosted by mobile advertising

Facebook's second quarter financial report, released this week, reveals over half a billion in revenue generated from mobile ads - more than 41% of its total revenue - and sends stock prices soaring.

by Helen Leggatt

Facebook generated $655.6 million in mobile ad revenue in the three months from April to June this year. That amount accounts for 41% of total revenues, up from 30% for the same quarter last year.

The resulting profits of $333m sent shares soaring 19%.

The number of monthly active users (MAUs) increased 21% year-on-year to 1.15 billion as at June 30, 2013, and daily active users rose 27% to an average of 699 million.

"We've made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile," said CEO Mark Zuckerberg. "The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future."

Facebook's chief financial officer, David Ebersman, stated that 20 billion minutes a day were spent on Facebook during June this year.

"This quarter marks the end of our first year as a public company and I think we've created a good foundation for the future," said Zuckerberg.

Research by Adobe, released ahead of Facebook's earnings announcement this Wednesday, revealed that newsfeed ads on the social network achieve 14 times the click-through rate of standard right-hand side ads. Furthermore, cost per clicks was comparable.

Image via Shutterstock

Tags: Facebook, financial reports, mobile advertising, mobile marketing, social marketing

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