Facebook Second Quarter Results Show a Future in Mobile Advertising

Facebook Second Quarter Results Show a Future in Mobile AdvertisingFacebook ended second quarter on a strong note, forcing shares upward 17% and showing a trend towards a positive future.

When Facebook announced plans to take its advertising mobile, it was met with much speculation and doubt. But as the second quarter ends for 2013, skeptics are beginning to second guess original claims that Facebook was not up to the challenge. Mobile-Ad sales rose to $656 million, a 75% increase over the previous months, surprising doubtful investors. Mobile-Ad sales now make up 41% of Facebook revenue which was only 30% in first quarter 2013.

The company exceeded profit and sales goals, increasing revenue to $1.81 billion or a 53% increase. As the company brought in a profit of $333 million, much of which is being attributed to its focuses on a more local advertising approach. Facebook has been investing more time recruiting small businesses to advertise which appears to have paid off with over 1 million active advertisers using Facebook and numbers steadily on the rise.

In addition to positive dollar results, facebook is now boasting a 27% increase in users, with over 699 million daily users on average for the month of June. Despite reports that facebook usage is decreasing user time totals well over 20 billion minutes collectively spend on facebook per day. With approximately 5 billion people yet to log into a facebook account, there is still much growth potential for the company over the upcoming years.

Company founder and CEO Mark Zuckerberg urges investors to be patient and think in the long term as Facebook continues its focus on Mobile-Ad business and strengthens its local focus. He also confirms that teenagers are still using facebook regularly despite speculation that they would decrease with the introduction of new concepts.

Investors are expecting growth to continue into third quarter and beyond as Zuckerberg aims to become the authority in mobile business advertising. One item of concern these new numbers raise is the amount of money Facebook is investing into the new mobile applications such as ‘home’ released for Android in comparison to mentionable profits.  A Cost of $1.25 billion in second quarter was spent improving its mobile advertising concepts. The ‘home’ application release with somewhat disappointing results though the company assures users this is a difficult programming to master and will take some more time to reach perfection.

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About the author

Kristin covers health, science and internet news.