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January 27, 2016

80 percent of Facebook revenue connected to mobile

Written by Investis Digital

Facebook announced today that 80 percent of its revenue comes directly from mobile devices. That’s a massive accomplishment considering that in total, 5.63 billion dollars came directly from its success as a digital marketing platform. According to Facebook, more than 90 percent of both monthly and daily active users access its mobile platform.

This ad growth is hard to ignore — this signifies the importance of the product Facebook is providing to marketers. They’re providing efficient methods of content distribution, smart ad targeting, and constantly investing in evolving their product.

In total for the full year 2015, Facebook exceeded expectations and said its revenue came in at $17.93 billion — an increase of 44 percent year-over-year.

After investigating the causes for this staggering revenue growth, marketers can look directly to mobile news feed improvements and Facebook video quality-of-life updates. In fact, their investment in video has earned Facebook 100 million hours of video watched per day. By owning three of the top downloaded apps in the App Store, Facebook is also slated to continue earning more from mobile engagement.

This creates an environment where marketers can develop more relevant ads. Conversely, consumers can discover more relevant products within those ads — it’s a win/win in everyone’s wallet.

Facebook also topped estimates for active users, reporting that it saw total monthly active users (MAUs) at about 1.59 billion by the end of Q4. Mobile users accounted for over 90 percent of total MAUs with over 1.44 billion.

Facebook’s saturation of sponsored video, photo, and ad content ensures that its users are always discovering relevant brands to engage with. Marketers have a new challenge this year — in order to stay competitive, their ad content needs to use all the tools and data available to enhance targeting to an extremely active audience.

It’s vital that marketers know that this influx of relevant visual content has transformed the news feed ecosystem into one streamlined for mobile users. The core Facebook app product is already robust — digital marketing on the platform is a core ingredient for any successful modern marketing strategy.

Moving through 2016, we expect to see bigger video platform improvements and resources dedicated to evolving the Facebook Messenger, WhatsApp and Instagram mobile business structure. In fact, it’s already begun to innovate with Instagram, which surpassed 400 million users last year and began selling ads in September.

Marketers can expect Facebook to continue developing at an aggressive speed throughout 2016. The social network knows what’s earning money for its partners and it’s continuing to improve its product by elevating relevant content and improving videos. Ensure that Facebook is an important part of your digital marketing strategy or risk losing out on the Internet’s most engaged mobile and desktop audience.

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