Tech Strategy Trends

Feb 1 2013   9:18AM GMT

Facebook future looking bright thanks to mobile

Tony Bradley Tony Bradley Profile: Tony Bradley

Facebook revealed its Q4 2012 quarterly earnings. Based on the numbers shared by Facebook, it seems like the company is heading in the right direction, and that mobile users may be the foundation of its success.

Facebook reported 680 million mobile monthly active users for Q4 2012—157 million of those used Facebook exclusively from a mobile device. That explains the significant 65 percent jump in mobile advertising revenue over the previous quarter. Mobile advertising accounted for 23 percent of total ad revenue in Q4 compared to only 14 percent in the previous quarter.

Eden Zoller, principal analyst at Ovum, commented, “Wal-Mart alone delivered 50 million mobile ads to customers. This solid progress on the mobile advertising front should be applauded as a key challenge for Facebook has been how to monetize its growing mobile user base, particularly as an increasing number interact with the platform by only via mobile devices.”

Another element that may contribute to Facebook’s growth is the recently launched Graph Search. It’s still embryonic and hasn’t been rolled out en masse, but it has tremendous potential. It’s not a direct competitor for Google, but it is a significant threat because it has the potential to become the de facto search tool for a wide variety of things people currently rely on Google for.

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