Facebook is the largest social network in the world, with around 900 million active users. This global leader has changed how we communicate and is altering how businesses operate. One of the biggest changes for Facebook investors today is the rise and success of mobile ads. As more users log in on their smartphones and mobile devices instead of personal computers, companies can benefit from advertising that reaches people on the go. The better performance of Facebook’s mobile ads compared to desktop ads is due to smaller screen sizes, which often cause accidental clicks. The increase in mobile click-through rates has greatly boosted ad revenue, generating 2.5 times more income than desktop feed ads.
Surprisingly, even though 60% of Facebook users claim they never click on ads or sponsored content, Facebook still managed to make an estimated $9.51 per person in ad revenue in 2011. During the first quarter of 2012, Facebook raked in $1.06 billion in revenue, of which 82% came from ads and the remaining 18% from social gaming. As smartphone usage and mobile browsing continue to rise, we are sure to see a huge increase in mobile ad performance by Facebook and other websites that follow suit. The following graphic explores the phenomenon of mobile marketing and how Facebook is cashing in.
Source: OnlineMBA.com