Less than three years ago, in 2012, when Facebook was filing it’s IPO, mobile ad revenue accounted for very little of their total ad revenue. Many investors worried if they would be able to compete in the space. But, since that moment, the social network has seen explosive growth in mobile ad revenue.
The very next year in 2013, mobile ad revenue jumped to 45% of their total ad revenue. Research firm eMarketer released their predictions for where that trend will lead and they believe mobile will pay off huge for Facebook accounting for an estimated $13.6 billion and 75% of their ad revenue.
Many believe that mobile is in its infancy and much of these predictions are based on the idea that Facebook and its competitors in the mobile space will be able to charge much higher rates as consumers become more willing to buy on their phone. In addition, more people are becoming users of the Facebook mobile app, in United States and abroad.
Another reason for the expected growth is international adoption of the Facebook platform. India is a country of 1.2 billion people and as their economy grows more and more people will be using mobile technology to access the platform. There are already almost as many mobile Facebook users in India as in the United States. Brazil and Mexico are also emerging markets that Facebook is targeting.
Facebook has a distinct advantage over traditional display ads because the experience is the same across all devices and ads are native. They know this very well and is big reason why they are investing in technology that will bring internet to the poorest areas of the world.
Do you think Facebook will grow ass fast as predicted?