Facebook's steely revenue march is fueled by mobile ads: 62% of Facebook's Q2 2014 advertising revenue came from mobile ads, up from 41% just a year ago. This ad revenue may still just be a paper castle waiting to fall -- my colleage Nate Elliott's analysis that Facebook is still failing marketers suggests that. But right now over a billion people around the world -- 81% of its entire member base -- access Facebook on mobile devices every month, twice as many as did just two years ago (see Figure 1). And they are seeing ads.
I see three important conclusions stemming from Facebook's results:
- The mobile mind shift is hitting critical mass around the world. People increasingly engage with people, information, and services on their mobile devices first. Forrester forecasts that 2.4 billion will have smartphones by 2017, twice the number as in 2012. So if your customer isn't mobile today, they will be soon -- across every generation. Firms must serve their increasingly impatient mobile customers with great mobile experiences. It's what our book, The Mobile Mind Shift, is about. Facebook is both driving and benefiting from the mobile mind shift as it delivers ever-more services on the devices people crave.