How much potential does Facebook have for mobile advertising?

Tencent Science and Technology News (Si Rui) Beijing time July 26, according to foreign media reports, Facebook founder and CEO Mark Zuckerberg last year decided to bet on mobile advertising decision is receiving significant results. At present, the company's mobile device advertising business revenue is gradually catching up with the desktop advertising business. According to Facebook's second-quarter results, the growth in demand for mobile advertising has put the company's net profits and revenues above analysts ' expectations. Facebook's share price rose 30% per cent after the earnings release, creating the biggest single-day gain for the company since its IPO, as well as the company's share price at its highest level since May 2012. Since the initial public offering last year, market analysts and investors have been concerned that, while smartphones and tablets are becoming more popular with consumers, the ability of mobile users to advertise sales of these two products is not necessarily strong. But Facebook's Better-than-expected earnings figures could eventually reassure analysts and investors. Investment agency Stifel Nicolaus & Co. Jordan Lochan (Jordan Rohan), said that by allowing marketers to push information services on smartphones and tablet devices and shift efforts towards mobile applications, Zuckerberg has succeeded in fulfilling the promise of making Facebook a "mobile-leading" social networking company. "For marketers, Facebook has a lucrative potential for mobile advertising," said Rohan. And Facebook finally launched a perfect advertising product to fully tap the marketing business potential. "Rohan rated Facebook shares as a" buy "level. Facebook's earnings for the second quarter were $1.813 billion, up 53% from $1.184 billion a year earlier, according to Facebook's results, excluding one-off spending of 19 cents per share. Analysts who had previously taken part in the Bloomberg survey averaged 14 cents per share, with revenue expected to be $1.62 billion trillion. The quarterly results ended in Thursday, when Facebook's shares rose nearly 30% per cent to 34.36 dollars a share. Analysts at Goldman Sachs, the US investment bank, have raised Facebook's target share price from $40 per share to $46 a share, according to statistics compiled by Bloomberg, and at least 10 investment bank analysts have also raised Facebook's target share price. The data also showed that Facebook, which traded on the stock market in Thursday, reached about 192 million shares, creating a one-day trading record since last November, which is more than four times times the average daily transaction volume this year. Paul Sweeney, Bloomberg Industrial analyst, Paul Swini: "Facebook's long-awaited red-print performance figures have finally erupted. In the second quarter of Facebook's ad collectionOf these, 41% came from the mobile advertising business. I think investors will be very concerned about that. "Facebook's shares were priced at $38 a share at the time of the IPO and fell to a 17, 55-dollar low last September. Even after a 30% per cent rise in Thursday, the company's shares are still below their IPO price of about 11%. Facebook's IPO was valued at $160 billion trillion, but worries about the company's smooth move to the mobile market have been depressing the rise in share prices. At present, Facebook has a P/e ratio of 149 times times higher than the 99% p/P 500 index. Mobile strategy push Zuckerberg said in a conference call that mobile advertising revenue will soon occupy half of the company's advertising business. In the first quarter of this year, mobile ad revenues accounted for 30% of all Facebook's advertising revenue. Facebook's mobile subscribers grew 51% in the second quarter to 819 million. The total number of Facebook users was 1.15 billion, up from 1.11 billion a year earlier. "The second quarter's results show that our transition to the mobile business has yielded tangible results," David Ibbosman David Ebersman, a Facebook finance officer, said in a media interview. All our investments in this business have been rewarded. "Facebook's share of the global mobile advertising market will reach 13% this year and 5.4% last year, according to projected figures published by EMarketer Inc., a market research agency. Still, Facebook is still a big gap from Google's 56%-year market share. Facebook has been using mobile services to accelerate its capture of the global mobile advertising market, which has not only upgraded its smartphone applications, but has also launched new video capabilities for photo-sharing services Instagram. Active user growth Zuckerberg said in a conference call that 61% of Facebook users log on to Facebook every day. While the company's management expects this to continue to decline, it is actually rising. "With the company's rapid growth, we will face more competitors, so I often think Facebook's percentage of active and monthly active users will drop," Zuckerberg said. But the exact opposite is true. "Facebook's second-quarter payments and other service charges were 214 million dollars, up 11% from a year earlier," he said. In a conference call, Ibbosman said Facebook lowered its capital expenditure forecast for the year to $1.6 billion trillion from $1.88 billion trillion. Improve marketing tools Facebook also improved advertising tools for advertisers. The company said last month it plans to cut more than half of its 27 advertising agencies, making the promotion-buying process simpler and more effective. Facebook AlsoAlso attracted more large advertisers. This April, GM renewed its claim to be Facebook's client. A year ago, the carmaker said it would withdraw its budget to advertise on Facebook. "This clearly shows that Facebook is better at making money from 1.1 billion of users," said Michael Pachter, an investment agency Wedbush Nomura Inc. in Los Angeles. It's easier said than done, but we know that if Facebook does its best, they can do it. ”