Facebook ad revenue boosted by mobile usage

Nicola Riches
By Nicola Riches | 23 April 2015
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Facebook has delivered another set of mixed results in its latest quarterly earnings report, but boasts a substantial 46% increase in advertising revenues on the same period last year.

The results show that advertising revenue would have climbed 55% had it not been for currency exchange rates, and therefore increased 46% - a figure owed to the fact that daily active mobile users have increased by over a third to 798 million across the world.

Revenue from advertising stood at $3.32 billion in the quarter. 73% of that figure was generated by mobile advertising.
Monthly active users increased 13% year on year to 1.44 billion, while total monthly mobile users hit 1.25bn, a 24% increase on this time last year.

Facebook's total revenue has grown 42% to US$3.54 billion, up from US$2.5bn in the same quarter last year.
However, GAAP measured operating margin has fallen to 26%, from 43% year on year and GAAP net income has fallen from $642bn to $512bn.

This quarter, Facebook reached a new milestone and delivered more than four billion daily video views. More than 75% of those video views occurred on mobile.

Meanwhile, Facebook also reports that Instagram now receives 200 million daily active users. The average Instagram user spends 21 minutes a day on the site, while communities using it in Indonesia, Japan and South Korea have grown by more than double since this time last year.

The company also launched two new ad formats this quarter: Dynamic Product Ads, which allow marketers to launch ads for different audiences and Carousel Ads on Facebook and Instagram, allowing marketers to advertise specific products. It also launched Conversion Lift, a tool that measures how much additional business has been driven by Facebook ads.

Email Nicola at nicolariches@yaffa.com.au.

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