Facebook’s shares are now at its highest level ever, up 71% from last year, due to a hike in mobile advertising sales on the platform.
Compared to last year mobile ad revenue on Facebook has increased 3 per cent over the last year, to make up 87 per cent of the total advertising revenue of the company.
Mark Zuckerberg, CEO of Facebook, said: “We had a good second quarter and first half of the year. Our community is now two billion people and we’re focusing on bringing the world closer together,” said Facebook’s CEO, Mark Zuckerberg.
Mobile advertising revenue avenues
Facebook is introducing adverts within the Messenger app, which is still in its early stages.
Although the news feed has been the core focus for advertising, Facebook has said it will decrease the frequency of adverts to avoid “ad load” and bothering their users.
The social media platform is also looking for new revenue streams outside the news feed such as expanding video advertising to include long-form videos on the platform.
David Wehner, Chief Financial Officer said: “In addition, we expect that our strategic focus on driving engagement with mobile video may slow advertising impression growth given the relatively fewer ad impressions in video relative to News Feed.
“I would also note that we do not see our early efforts in Messenger monetisation offsetting the factors that I just mentioned.”
Competition from Snapchat
Although Facebook dominates digital advertising, along with Google, it still is facing competition from Snapchat, a platform that is used amongst young users.
Facebook has been incorporating Snapchat-like features within their other apps with Instagram Stories and Whatsapp Status.
Wehner said: “We’ve seen particular strength with Instagram Stories and WhatsApp Status. Each of those has over 250m daily active users.”
Mobile advertising is valuable if done well, but content is still the main focus for readers, so any advertising that dominates this can only cause frustration for them.