Get Estimate

What you can learn from Facebook’s Fourth Quarter Earnings

February 07, 2017
By Terry Tateossian
shutterstock_293765597

In a recent article published in The Wall Street Journal Facebook made, yet another, quarter of massive advertising revenue growth in terms of its mobile ad business.

It was reported that revenue for the fourth quarter was $8.81 billion, up from 53% a year ago. And mobile accounted for 84% of advertising revenue.

Here is what marketers should keep in mind from the earnings report:

1. Hands down, Facebook’s audience is huge. The company said that 1.23 billion people used its services at lease once a day during December.

2. Video ads are working. More premium video ad opportunities for marketers are rising up on Facebook, as the platform shifts its focus to video. The company is testing new mid-roll advertising products.

3. Facebook TV is the future. Facebook is looking to implement a video tab into the social network, exclusively for professionally produced episodic content. Facebook will also be creating an app for TV set-top boxes to distribute content to users TVs, with plans down the road for advertising revenue to help fund the creators.

4. Mobile is hot. Facebook has proven that it has figured out, once what was a conundrum for most marketers– mobile advertising. The company reported that 84% of its ad revenue came from mobile during the fourth quarter, up from 80% in the fourth quarter of 2015.

5. Measurement capabilities are improving. Facebook will be ensuring that marketers understand what sort of returns they are getting for advertising on the platform. Facebook will continually be improving its measurement capabilities and consulting with more third party measurement companies going forward.

Reference:

https://www.wsj.com/articles/5-things-marketers-should-note-from-facebooks-fourth-quarter-earnings-1485993565?emailToken=JRrzcf5+YXyQhtE8bsxhkUEob68HEKqMT0nUIWzHIFOJr3zSvOatgqMym9byr3moQAN07tsJ5Wk4RiaUjm13RtOR3qdimE24dmMYo5je1wyNNV+exRLaILtN7fSLow==