Facebook has a net profit of $200 million trillion, and mobile platform advertising revenue accounts for 25.7% of total revenue

Source: Internet
Author: User
Keywords Mobile AD Facebook facebook

Despite the bad reviews, Facebook's chief executive, Mark Zuckerberg, still says "Facebook home" is his most exciting mobile app.

How to get the Nuggets out of mobile interconnection is a worldwide topic, and social giant Facebook's mobile platform strategy appears to have been successful.

On May 1, Facebook posted its first-quarter results as of March 31, boosted by a surge in mobile advertising, when revenue (compared with a year earlier) grew 38% to 1.458 billion dollars, net profit rose 7% to 219 million dollars, outpacing Wall Street's expectations.

Facebook offers more ads to smartphones and tablet users, Reuters said. New ads designed for smartphones, especially those that attract Facebook users to install apps on their phones, help boost revenue, while social-networking sites remain robust.

Facebook said advertising revenues from mobile platforms accounted for 25.7% of total revenue, from $306 million trillion in the fourth quarter of 2012 to $375 million trillion, compared with $153 million in the third quarter of 2012.

Despite a "report card" that exceeded expectations, Facebook's shares fell 1.22% per cent on the same day, after a 3.7% per cent rise.

Facebook Home New Apps

As more users turn to mobile clients, how Facebook has made a profit from the mobile platform has been a concern for investors, especially after the IPO last May, when Facebook did not put any ads on the mobile platform.

David Aybosman, Facebook's chief financial officer, said most advertisers did not specify whether ads should be specifically placed on mobile platforms or on traditional PC platforms, but it was up to Facebook to decide which platform would be more appropriate. Sandberg, the company's chief operating officer, said it would continue to increase investment in advertising, improve the user experience of advertising products and advertisers ' return on investments.

EMarketer, the research firm, said it expects Facebook's online advertising market to rise to 6.5% this year from 5.6% last year, while the market share of mobile advertising will rise to 13.2%, the second largest mobile platform advertiser in the United States, but still far behind Google. EMarketer that the U.S. mobile advertising market will reach 7.29 billion trillion dollars this year.

To be able to retain users on mobile platforms, Facebook has launched a "Facebook home" app that integrates Facebook's functionality with Android, replacing the skin interface of smartphones and promoting Facebook content to users. The software has harvested more than 500,000 downloads in 5 days, but bad reviews. Facebook's chief executive, Zuckerberg, said, "one of the most exciting aspects of mobile is Facebook home." "He argues that the product is still in its early stages," he said.

In addition, Facebook's acquisition of picture-sharing mobile apps Instagram grew rapidly early last year, and the current total number of users has exceeded 100 million, far exceeding 10 million when acquiring Instagram.

Rising viscosity of mobile platform

Reuters quoted Jefferies analyst Josh as saying that everyone is looking at two things, one is how far the mobile business is and how big it is, and the other is user involvement.

Third-party research data show that the number of users using Facabook mobile clients is growing. The number of U.S. users using smartphones to visit Facebook in March this year grew by nearly 60% to 90 million, according to Nielsen, a market-research firm, while the number of people using a PC to log on to Facebook dropped 11 million.

But that does not dispel investors ' concerns about how Facebook can withstand competition from other companies as the variety of social software grows, "what Facebook can do is get users back and make money from them." "said Elite, a market research firm, Forrester analyst.

Zuckerberg also said in a conference call that Facebook and rivals have room to grow their business.

Facebook's consolation is that last year's acquisition of the number of Instagram users has grown from 22 million to 100 million, which will be another important growth point for Facebook.

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