A recent article on the online New York Times discusses Facebook’s revenue increase due to mobile ads. Facebook officially began to show ads after it became a public company. In Facebook’s earnings report that came out on May 1, the company has revealed that it is gaining revenue from mobile ads.
During this year’s first quarter, Facebook’s mobile advertising generated about $375 million, according to the article. Mobile revenue was 30 percent of the company’s overall ad revenue, compared with 23 percent from the same time last year. Despite this, investors still aren’t confident in the company because it continues to spend a lot of money to develop new features, including about a half-dozen advertising products.
Because of its target marketing campaigns, Facebook has started to use app-install ads, which are meant to draw in targeted audiences based on online and offline social behavior. This means that mobile users can expect to see more finely tuned targeted ads when they login on their mobile devices. In additions, marketers can show larger images and more prominent links in a redesigned News Feed. This is made more noticeable by the fact that Facebook’s April release of Facebook Home, mobile software for Android phones, redirects users to their mobile New Feeds more frequently by making it a constantly-updating screensaver for a smartphone.
Facebook’s COO Sheryl Sandberg commented on those targeted ads. She said:
“We want content in ads that’s as good as content from a friend or somewhere else on the site, as well as to have a higher return for marketers. Those go hand in hand. What you’ll see from us is better targeting.”
For advertiser networks like Altitude Digital, this means that advertising optimization may spread via Facebook News Feeds. Pre-roll videos that are created specifically for mobile devices could appear not only in a person’s New Feed, but also potentially on Facebook Home. This not only broadens the reach of Altitude Digital’s online ads, but targets those ads specifically to relevant people to gain better engagement.