- Forrester Councils
- Councils Overview
- log in
Posted by Ted Schadler on July 24, 2014
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:
Facebook's financial results are a bellweather indicator of the mobile mind shift. If it's true for the 1.3 billion Facebook members, it will be true for many or most of your customers and employees.
As an aside, Facebook come a long way since 2006 when I met with a young Facebook employee carrying the exalted title "chief revenue officer." The company had $0 revenue at the time. We talked about an ad-support business model back then, but he was worried about ads as their sole model. (I pushed him hard to avoid subscriptions.) Not any longer. Ads, and now mobile ads, are Facebook's destiny. At some point soon, Facebook's future will hinge on whether it can monetize even more mobile moments through ads.
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »