Facebook Earnings: Mobile Momentum And Massive Mojo

Jan 29 2014, 10:51pm CST | by

Facebook Earnings: Mobile Momentum And Massive Mojo

It’s a 22 minute drive from Sunnyvale to Menlo Park, but Yahoo and Facebook might as well exist on different planets.

A day after Yahoo CEO Marissa Mayer tried to explain to investors exactly how selling more ads for less money constitutes “a strong foundation for growth,” her counterpart, Mark Zuckerberg, required no such contortions.

Everywhere that Yahoo is weak, Facebook is strong. Mobile, once seen as Facebook’s Achilles heel, is now the foundation of its strength, representing 53% of total ad revenue in Q4. In fact, the $1.25 billion in mobile revenue Facebook vacuumed up in the fourth quarter was almost as much as the company’s total revenue in the year-earlier quarter, as COO Sheryl Sandberg pointed out.

Thanks to a months-long push to weed out low-quality ads, combined with the decision to cap the frequency of ads delivered in Newsfeed, Facebook is able to keep raising the rates it charges marketers. Meanwhile, the monetization of Instagram — an environment considered by many to be a more natural home for brand advertising than Facebook itself — is only just getting under way.

The situation is so enviable that Zuckerberg has leisure to contemplate the ultimate problem of affluence: the possibility that Facebook will run out of potential new customers in the foreseeable future, having already signed up basically everyone with an internet connection.

Heading off that scenario by bringing internet access to the billions of people who currently lack it is the focus of Facebook’s 10-year plan, Zuckerberg said. He also identified the priorities of his three-year plan (encouraging more sharing around so-called public content) and five-year plan (“helping people answer their questions” on Facebook through Graph Search).

Just about the only thing Zuckerberg doesn’t seem to have a ready answer for is the worrisome indicators that younger teens may be drifting away from Facebook to other services. Asked whether there’s been any change in the trend, Zuckerberg deferred to his CFO, David Ebersman, who merely said, “We don’t have any new data to report today.”

But given Facebook’s history of underpromising and overdelivering, don’t be surprised if they solve that one soon, too.

Source: Forbes Business


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

Finnish scientists identify new type of black hole
Helsinki, Oct 31 (IANS) Finnish researchers have discovered a new type of low-mass black hole, which is a bright celestial body that emits X-ray, the University of Turku has said.
Union Carbide ex-chief Warren Anderson is dead
Washington, Oct 31 (IANS) Warren Anderson, former chief executive officer of the Union Carbide Corporation, is dead, a media report said Friday. He was 92.
Himalayan Viagra fuels gold rush for local Tibetans
Washington, Oct 31 (IANS) Overwhelmed by people trying to find the prized medicinal fungus known as Himalayan Viagra, two isolated Tibetan communities have managed to implement a successful system for the sustainable harvest of the precious natural resource, suggests research.
Oceans were always there on Earth: Scientists
Washington, Oct 31 (IANS) Debunking previous theories that water came late to Earth well after the planet had formed, researchers have significantly moved back the clock for the first evidence of water on Earth and in the inner solar system.

Latest from the Network

Julia Stiles and Ray Liotta cast in Go With Me
Julia Stiles and Ray Liotta have been added to the cast of Anthony Hopkins' new film 'Go With Me'. The action-drama, which will begin shooting in mid-November, tells the story of a young woman who returns to her home...
Read more on Movie Balla
Seth Rogen to star in Steve Jobs biopic
Seth Rogen is in talks to star in Sony's Steve Jobs biopic. The 'Bad Neighbours' star is in negotiations with the studio to take on the role of Apple co-founder Steve Wozniak - who created the Apple I computer and co-...
Read more on Movie Balla
Jennifer Lopez has struggled to love herself
Jennifer Lopez say she's spent much of her life beating herself up for not being good enough. The 'Dance Again' hitmaker, who has six-year-old twins Max and Emme with her third ex-husband, Marc Anthony, puts a lot of...
Read more on Celebrity Balla
Julianne Hough's teary tribute to sister
Julianne Hough broke down in tears while praising her older sister. The 26-year-old singer/songwriter made an emotional speech in which she praised her older sister, Sharee Wise, admitting her sibling inspired her to...
Read more on Celebrity Balla
Tom Parker vows to look after Lindsay Lohan
Tom Parker has vowed to look after Lindsay Lohan. The former Wanted star is keeping a watchful eye over the 28-year-old actress as she performs in play 'Speed-the-Plow' in London because he wants to help the flame-...
Read more on Celebrity Balla
Kaley Cuoco-Sweeting fell for husband over animals
Kaley Cuoco-Sweeting knew her husband was 'The One' because he loves animals. The 'Big Bang Theory' star, who married tennis player Ryan Sweeting in December after just six months of dating, admits she fell in love with...
Read more on Celebrity Balla
Orson Welles last film to be released
Orson Welles' final movie will finally be released next year. The acclaimed filmmaker had worked on 'The Other Side of the Wind' - which chronicles a temperamental film director battling with the Hollywood establishment...
Read more on Movie Balla
Game of Thrones stars get pay rise
'Games of Thrones' cast members will be paid $300,000 an episode. Five of the shows biggest stars - Peter Dinklage, Kit Harington, Lena Headey, Emilia Clarke and Nikolaj Coster-Waldau - have landed bumper payrises after...
Read more on Celebrity Balla
Mike Tyson: I was abused
Mike Tyson claims he was sexually abused as a child. The 48-year-old retired boxer was ''snatched'' off the street when he was seven by an ''old man'', who he never saw again after the shocking one-time incident....
Read more on Celebrity Balla
Amanda Bynes released from psychiatric facility
Amanda Bynes has been released from a psychiatric treatment facility. The 'Easy A' actress was spotted walking around Sunset Strip, West Hollywood, last night (30.10.14), 19 days after she was admitted to the hospital...
Read more on Celebrity Balla