Have you taken a look at Facebook’s stock price over the last few years? It’s more than quadrupled since its IPO in 2012.
What’s the driving force behind the R&D Directors Email Lists company’s growth? Mobile ads.
Over the last four years, Facebook’s desktop advertising revenue has stayed flat at about a billion dollars per quarter. On the other hand, its mobile advertising revenue rose from about a billion dollars per quarter to more than three billion dollars per quarter over the same period of time.
That’s why the company’s stock price has soared.
Here’s more from Statista:
When Facebook started selling mobile advertising in 2012, not even the keenest optimists could have predicted how successful this decision would turn out. In each of the past eleven quarters, mobile ads have accounted for more then 90% of Facebook’s revenue growth. In the first nine months of 2015, all of the company’s growth came from advertising on tablets and smartphones. Mobile ad revenue now accounts for 78 percent of Facebook’s advertising revenue and 74 percent of total revenue.
Facebook made a business decision early on to adopt mobile advertising as part of its business model. It’s safe to say that decision has paid off.
Highly Targeted Marketing
If you’re familiar with the advertising options on Facebook, then you know the targeting settings are a marketer’s dream come true. You run your ad so that it only appears to people based on their demographics or interests. You can define those characteristics as narrowly as you want.
Even better for the mobile era is that you can dictate that your ads only appear to people based on the mobile device that they’re using and/or the type of network that they’re on. That makes it easier to practice mobile marketing that’s relevant to your target market and won’t leave them frustrated.
For example, if you’re running a video ad, you probably don’t want to target people who are on a 3G or 4G network. That’s because videos are data-intensive and
someone in your market might be slapped with a charge for overuse of data transfer. On the other hand, the sky is usually the limit on WiFi networks when it comes to data throughput,
so you’d want your video ad to be shown to mobile users on a home or office-based network.
Not only that, but you can also string together a variety of targeting criteria that include mobile usage. For example, if you want to target someone who’s interested in cooking and is also using an iPhone 6, Facebook gives you the option to do that.