10
Days ago, the results from latest quarter proved that for the first time, the
mobile advertising accounted for more than half of its total ad revenue, -
facebook. That is a clear sign that the social network born a decade ago in the
desktop computer era is succeeding in its goal of being the "Mobile
First". Facebook's revenue and earnings for the last three months of 2013
handily surpassed Wall Street's expectations for the third quarter in a row as
it further expands the number of users and the amount of money it makes on
mobile ads.
What
started out as a project in a Harvard dorm room project has become the way that
more than one billion people around the world communicate. Well, more than a
year and a half after investors and analysts first raised concerns about the
Facebook's potential to monetize on mobile; it seems that those concerns can
finally be laid to rest. Facebook reported earnings per share of $0.31 on
revenue of $2.59 billion for the quarter, beating Wall Street estimates for
earnings of $0.27 per share on revenue of $2.33 billion.
Through
these 10 years, Facebook has gone through a lot of remarkable changes since
2004. Facebook’s demographics show that 48% of 18-35 year old checks their
profile first thing when they wake up.
Users who login daily are 50%.
Facebook
built its separate Camera app for shooting, filtering and even sharing photos
in 2012, as it watched the Instagram’s popularity going high. But then Facebook
took Instagram before Camera even launched, and then it never saw much development
after that. In December 2012, Facebook had cloned Snapchat and launched it as
Poke, an application for sending self-deleting text, photos, audios and videos.
Facebook had been interested in acquiring Snapchat so it built its own version.
But a lack of organic community and entrenched worries about Facebook privacy
led Poke to quickly peter out which hardly put any dent in Snapchat.
Now
Facebook has given up on Camera and Poke. Although they remain available in the
App Store, the company confirmed that they have been depreciated and will
receive no more active development.
Facebook
had set out to rebuild the messenger. In November it launched with its
development team. What began as a rebranded version of group messaging app
Beluga which Facebook acquired in March 2011 had finally been given its own
identity.
Messenger
even sounds different. It has got its own range of carefully composed tones for
sending and receiving messages but also new ones like a little keyboard clatter
that tells you that your conversation partner is typing. It is optimized for
Facebook’s cute stickers that let people express complex emotions quickly. New
indicators tell you if a friend is on the web or not or on mobile without
Messenger or has Messenger installed and will be more likely to respond
quickly.
53%
of Facebook's ad revenue came from mobile during the quarter, up from 49 % in
the third quarter. Facebook continues to increase its share of the worldwide
digital advertising and within that mobile advertising market. It acquired
nearly 6 percent of the world's digital ad revenue in 2013, up from 4 % in
2012, according to research firm eMarketer. Online search leader Google however
had accounted for a 32 percent share of the market in 2013.
When
it comes to mobile ad spending, Facebook accounted for an 18 % share of the
total amount companies spent in 2013, according to eMarketer. That is up from 5
percent a year earlier. The company's stocks doubled in 2013 thanks to renewed
confidence in the company’s prospects on mobile as well as optimism for new and
existing revenue streams from video, Instagram ads and mobile app install ads.
The stock jumped by more than 5% in after hours trading following the earnings
report.
So,
this was a quick report on Facebook’s journey and its new updates regarding the
revenue generation.
Congrats Mark !!!
Author : Iman Majeed
0 comments:
Post a Comment