Facebook continues to see strong mobile momentum in Q2

Facebook continues to see strong mobile momentum in Q2

24 JUL 2014

Facebook’s focus on mobile continued to pay off in the second quarter as the sector accounted for a record 62 per cent of total advertising revenue.

Mark Zuckerberg, Facebook’s CEO, said it had been a “good second quarter” in which “our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world”.

Total advertising revenue increased 67 per cent to reach $2.68 billion, meaning mobile generated $1.66 billion. Mobile advertising revenue made up just 42 per cent of the total in the same quarter last year and 59 per cent in the first quarter of 2014.

Facebook COO Sheryl Sandberg said mobile ad revenue grew 151 per cent year-on-year and stressed that mobile app install ads are not the only source of mobile ad revenue, with “large brand advertisers, small SMBs, direct response advertisers” using mobile ads in addition to developers.

Sandberg also noted that the company has seen “positive early demand” from marketers for ads in Instagram, which are currently being rolled out on a selective basis.

Zuckerberg noted that Facebook’s mobile ad network, Audience Network, has received a “lot of interest” from developers since it started to be rolled out following its launch in May.

Mobile monthly active users totalled 1.07 billion as of 30 June, a 31 per cent increase compared with a year earlier. There were a total of 1.32 billion monthly active users across the social network, a 14 per cent increase.

Facebook had an average of 654 million mobile daily active users during June, up 39 per cent year-on-year from 469 million in June 2013. Total daily active users stood at 829 million, a 19 per cent year on year increase.

Referring to Facebook Messenger, Instagram and WhatsApp (which is currently in the process of being acquired by Facebook for $19 billion), Zuckerberg said “there is a lot of work to set up the foundation for having a good business community and ecosystem” and that there will be “years of work before those are huge businesses for us”.

For the quarter ended 30 June, Facebook reported total revenue of $2.91 billion, up 61 per cent from $1.81 billion for the same quarter a year ago. Net income on a GAAP basis was $1.09 billion, more than double the 2013 figure of $488 million.

It was also confirmed that the acquisition of virtual reality company Oculus closed during the quarter.

“We continue to focus on three key areas in investment; capitalising on the shift to mobile; growing the number of marketers using Facebook; and building our ad products,” Sandberg said.

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Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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