Despite its IPO struggle, Facebook has managed to slowly regain some lost grounds in recent months, and the social network’s mobile platform should be given some of the credit for helping the Zuckerberg engine gain steam.
According to a recent report, Facebook generated 23 percent, $306 million, of its total revenue from mobile advertisement, that’s a 14 percent increase in the third quarter. In total, Facebook’s revenue rose 40 percent from $1.13 billion to $1.59 billion.
Critics and naysayers of Facebook’s decision to go public jeered at the fact that Facebook did not have anything else to fall back onto should Facebook’s advertisement platform crumble. Many knew that Facebook had its eye on mobility, with some even speculating early on that a Facebook smartphone may become a reality. Co-founder and CEO Mark Zuckerberg rejected the notion that Facebook is considering getting into the hardware business, and said that it will continue to stick to its core business model—advertisement.
Facebook’s earnings in the October-December period was down $360 million compared to a year earlier, but its earning from mobile advertisement increased. Meaning, Zuckerberg has maintained his position of keeping Facebook an advertisement conglomerate.
“I think more people are starting to understand mobile is a great opportunity for us,” Zuckerberg told an analyst. “It allows us to reach more people, we have engagement from the people we reach and I think we will be able to make more money for each minute people spend with us on… mobile devices.”
The recent increase in money generated from mobile advertisement is by no means evidence that Facebook stock will continue to rise, but it’s definitely a sign that the potential earnings via interaction with people's mobile devices is quickly rising as people move away from desktop PCs and onto smartphones and tablets.