Facebook’s Monster Mobile Ad Machine

 

fbq4-2015-evanstweetFrom my Forbes blog:

If there’s one number that stands out in Facebook’s by-all-accounts stellar fourth-quarter earnings report today, it’s the amount of advertising revenues from mobile devices: 80 percent.

Nobody should be surprised that mobile dominates Facebook’s revenues, which rose 52 percent in the quarter (66% on a constant currency basis), to $5.84 billion, from the previous year. A year ago, mobile ad sales were already 69 percent of the total.

But 80 percent is not only a nice round number, but one that says Facebook is inarguably and irrevocably a mobile company. Facebook Chief Operating Officer Sheryl Sandberg said during the earnings call that mobile ad revenues rocketed 81 percent, to $4.5 billion. It’s such a commanding number that those ads on the right side of the desktop home page, let alone in the desktop news feed, almost feel like holdovers from a bygone era.

Like 2012. That’s when Facebook’s initial public offering of shares stumbled largely because the social network had essentially zero revenues from mobile. Zero! …

Read the rest of the analysis.