Facebook Inc (NASDAQ:FB) the face of success in mobile advertising
Let’s face it, Facebook Inc (NASDAQ:FB) never lets up its efforts on any front and never let’s its investors down. Facebook is one company that has been bold enough to focus on online advertising and bolder enough to say that it does so! Internet companies have for long been struggling with making money via the mobile media and Facebook’s success in this area is now their beacon of hope.
The screen that matters
In a matter of just three months the social network has seen a 75% rise in revenue from mobile advertising. Wall Street and Madison Avenue Skeptics are all zipping their lips about the company’s business prospects. FB’s newsfeed ads throw marketing messages directly to the content stream of users. This is the secret of success for the company that likes to do things differently. Facebook closed at $34.36 per share in Thursday’s closing which is a stupendous 29.61% increase, which is proof enough that it is doing something amazingly right.
Its goes without saying that a large number of companies will try to replicate this model as FB has proved without a doubt that it works. Internet companies have forever had qualms about the fact that mobile advertising does not have the scope and money-earning potential that desktop advertising has. The main contention is that mobile devices have smaller screens and that consumers will eventually protest the tidal wave of ads on their phones.
Only one winner
Everyone from Yahoo to Google and Snapchat, an upstart have been looking for that perfect recipe for garnering profits on mobile devices, and have met with varying success. But only FB has managed to actually turn it into a stupendous gain. A year ago, the company had zero revenue from mobile. One year down the line, its aggressive mobile marketing has shown that this is a formula that can work and work very well.