Facebook’s strong mobile advertising business helped the social network beat expectations on both the top and the bottom line in the first quarter of 2017. Revenue climbed 49 per cent to $8.03 billion as the company’s profit increased by 76 per cent to $3.06 billion.
When Facebook started selling mobile advertising space in 2012, not even the keenest optimists could have predicted how successful this decision would turn out to be. Mobile advertising has accounted for more than 90 per cent of Facebook’s revenue growth ever since and currently drives 83 per cent of the company’s total revenue.
Considering the fact that Facebook has far more than a billion mobile users on an average day, it is no surprise that its mobile advertising efforts are successful. The pace at which the company’s mobile ad business continues to grow five years into its existence is impressive though.