It’s official. Facebook has confirmed that revenues from its mobile apps are boosting the company’s profits, accounting for a greater share of Facebook’s revenues than before. Also, for the first time, Facebook’s mobile users are now greater in number than those using the social networking site on their computers.
According to Facebook, mobile-related products and services accounted for 23% of the company’s ad revenue in the last quarter. That was an increase from 14% the previous quarter.
Those encouraging statistics, which are bound to please the company’s anxious investors, came after the company posted its 4th quarter results, that showed very strong results, based on the company’s mobile app performances. For instance, the company posted earnings of $.17 a share, while the industry had been expecting a quarterly posting of $.15 a share. The company also posted $1.59 billion in revenue, while analysts expected about $1.53 billion in revenue.
Facebook’s performance clearly has exceeded expectations, and delivered a resounding answer to many of its detractors. What is very interesting is that much of this turnaround for the company has been driven by mobile apps.
“Small companies, should take note, business are not prepared to meet potential or existing customers where they are – which is mobile. Over 70% of the small business market is not mobile friendly, stated Marisabel Wolfinger, COO of ApporClick Mobile Marketing Solutions. Having a mobile presence is a must and Facebook’s results are proof of that.”
Facebook estimates that as much as 50% of its much talked-about 1 billion membership base uses the mobile app. Further, approximately 70% of the company’s membership is believed to now access the website through a mobile device.
An exhilarated Mark Zuckerberg said it succinctly – Facebook is undoubtedly now a mobile company.
Facebook isn’t the only company that has been experiencing success using its mobile-related apps, products or services. Most Fortune 500 companies are now using mobile-related apps, and have incorporated full-fledged mobile strategy into their mainstream marketing campaigns.