Mobile drives Facebook advertising revenue for the whole year 2016

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Source Facebook

Mobile is now responsible for roughly 84% of Facebook’s $26 billion full-year 2016 advertising revenue. The latest company report also noted that revenues had exceeded previous forecasts, driven by advertisers trying to reach audiences on smartphones and tablets.

Overall sales increased 51% to $8.81 billion, slightly ahead of analysts’ projections.  The average revenue per user in the US and Canada during Q4 2016 grew to $19.81 from $13.7 the year before.

Monthly active users jumped 17% from 2015 to 1.86 billion. Of those, 1.23 billion people are checking into the network every day via their smartphones.

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On the back of the earnings presented on Wednesday, Facebook shares climbed as much as 3.6%.

The big question for shareholders in 2017 concerns revenue growth. Facebook had previously warned that revenue growth may stall this year due to advertising market saturation.

However, as the second largest mobile advertiser behind Google Alphabet, Facebook is sure to have some tricks up its sleeves.

For starters, the company also owns Instagram, which recently announced over 600 million users. The social media giant has also been busy rolling out its advertising options and targeting features for Instagram brands and marketers.

In addition, it has been busy prepping new video advertising features for both Facebook and Instagram including the Snapshot-inspired ‘animated masks’. 

Brian Wieser, Analyst, Pivotal Research Group, isn’t worried about Facebook’s growth:

“Facebook and Google are the two foundational elements to all digital advertising. They’re just so big in terms of how much time people spend on the platform, and no advertisers’ goals need go unmet if they’re using Facebook.”

Facebook has previously confirmed that video formats were performing particularly well across the platform. Mid-roll monetisation features have since been implemented. Though the company focuses on shorter content for now, it plans to enable long-form content in the future. That sounds an awful lot like Facebook may be trying to become YouTube and Netflix all at once.

However, whilst Facebook is trying to bolster its business through innovation it should be careful not to copy too much from its competitors.

According to a ruling Wednesday, Facebook has been ordered to pay $500 million after Oculus, the VR headset maker it acquired in 2014, was found to have used stolen technology from video gaming company ZeniMax.