Facebook Impresses with Boost in Mobile Ads

The company’s total revenue rose to $5.84bn (£4.10bn) from $3.85bn (£2.7bn) a year earlier, with ad revenue increasing 56.8 per cent during the Christmas holiday shopping period, when spending on advertising normally peaks.

The social media giant disclosed that monthly active users (MAU) were 1.59 billion, as of December 31, 2015, which increased 14% YoY.

Facebook’s monetization of its mobile platform has been undeniably successful with ad revenue from the platform bringing in 80% of all ad revenue, up from 78% sequentially and 69% in the same period past year. “Our community continued to grow and our business is thriving”.

Facebook (NASDAQ:FB) shares surged on Thursday as robust mobile advertising sales powered the world’s largest online social network fourth-quarter results.

Although Facebook shares were down 3 percent during regular trading, closing at $94.45, the company’s earnings results, announced after the close of trading, buoyed its stock price after hours.

Facebook is growing rapidly as it enters adolescence, putting it in a position to challenge Google as the Internet’s most powerful company.

Facebook also reported full-year earnings. “They have shaken up multiple types of businesses and completely changed the way that people communicate”. The firm added 46m users in the final three months of a year ago with which its worldwide users now stands at 1.59bn. Earlier this month, Facebook’s WhatsApp messaging unit said it would scrap its subscription fee and test ways to help businesses to interact with users.

Unlike Twitter, Facebook reported growth in its active user base.

“Overall Q4 was a strong quarter and a great end to the year…”

On the money front Facebook also confirmed it was a record-breaking year, with revenue of £12.5 billion for the year, a rise of 44%.

On the other hand, Wedbush Securities analyst Michael Pachter, said, “The Internet is capturing more share of advertising and Facebook is capturing the lion’s share of that growth”. The more insignificant revenue streams such as payments and “other fees” revenue suffered a decline of 21%, falling to $240 million due to pressures from PC gaming declines.

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