Facebook Q3 Earnings: Mobile, Targeting, and PMDs are the Keys to Success
November 5, 2013
Facebook’s Q3 Earnings Report shows that Facebook is more intelligent, streamlined, and mobile than ever before.
After beating revenue estimates in 3 of the last 4 quarters, Facebook reported its first $2 billion quarter ($2.02B), soaring past the $1.91 billion in revenue anticipated by Wall Street. This impressive showing is due in large part to revamped ad policies, a focus on Preferred Marketing Developers (PMDs), and an increased mobile presence.
Facebook’s implementation of mobile app ads to drive installs, refined retargeting (including the new website and mobile app Custom Audiences tool), and Facebook Exchange (FBX) with real-time bidding development, are just a few of the dynamic changes that have reshaped Facebook’s advertising landscape. Improved News Feed algorithms and streamlined ad-types with customizable features, size, and desktop placement have increased the scope and tightened the focus of marketing campaigns.
Marketers who use PMDs in this dynamic ad landscape can best maximize ROI. Sheryl Sandberg, COO, noted, “Over the past two years we’ve invested in building an ecosystem that supports all types of marketers and PMDs help those marketers advertise effectively with us. Today this program is a community of hundreds of technology and service companies spread across more than 45 countries.”
Aside from increased ad efficiency, Facebook’s Q3 Earnings reflects measurable growth in nearly every sector of user engagement:
1.19 billion Monthly Active Users (MAUs) – up from 1 billion a year ago
728 million Daily Active Users (DAUs) – up from 584 million last year
874 million Mobile MAUs – up from 819 million three months ago
507 million Mobile DAUs – up from 469 million in June
However, the most exciting area of growth is in the Mobile-Only MAUs:
254 million people use Facebook exclusively from mobile devices.
That’s over a 50% increase from 126 million last year. What does this massive spike in mobile users – particularly mobile-only users – mean? Mobile ad revenue.
$1.8 billion of Facebook’s total Q3 revenue came from ads, and 49% of that came from mobile ads alone. Facebook’s ability to capitalize on this drastic market shift, from desktop to mobile, has been essential to its Q3 success.
Facebook is applying smarter analytics, and embracing its mobile users with open arms. Two-weeks ago they purchased mobile app developer Onovo. Techcrunch reports, “Onovo gives [Facebook] a deeper technology bench to measure how mobile services are working — who is using them, as well as how to make them work in the most optimised way on mobile devices.” This knowledge of what works for specific apps and mobile users is just the latest step in Facebook’s ongoing mobile development.
The shift toward smarter analytics, mobile audiences, and PMDs implementing targeted ad campaigns has resulted in higher ROIs, streamlined ads, more navigable APIs, and a better Facebook experience for the growing number of Facebook marketers and users.
If there’s one major takeaway from Facebook’s Q3 Earnings Report, it’s that Facebook is mobile – and on the move!
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