Facebook profits triple in Q1
The social network's mobile advertising business has increased drastically over the last three months, helping Facebook exceed their share objectives.
This boost in advertising has resulted in the company's revenues growing 72 per cent in the first quarter of 2014 - a year-on-year increase of $2.5 billion. Facebook's shares have also experienced a shift, having risen by 3 per cent to $63.05 by the end of trading on Wednesday 23rd April which surpassed Wall Street's financial targets.
Facebook and mobile advertising
Facebook has said that mobile ads represented 59 per cent of its ad revenue in Q1, which is a rise of 30 per cent year-on-year. This is a positive sign for the company following speculation earlier this year that the future of the social network was to be short, after a research team from Princeton University projected that the number of Facebook users will have decreased by 80 per cent by 2017.
However, as the research only took into account Facebook search volume in Google which has seen a steady decline since its all time peak in December 2012, it did not take into account the 870m users who had switched to using the service via their smart devices.
According to Facebook's latest statement the site has successfully tapped into this market by injecting paid marketing messages, ideally suited to the size of mobile screens, into user's news feeds. By 31st March 2014, the number of monthly active Facebook users had reached 1.28bn, 1.01bn of whom accessed the service via their smartphone or tablet.
The social network also announced changes at the top level of the company, with Finance Chief David Ebersman set to leave Facebook in order to pursue an opportunity in the healthcare industry that has as yet, remained unspecified. Ebersman will remain with Facebook until September when he will be replaced by Facebook's vice president of corporate finance and business planning, David Wehner.
Natalie Booth, head of search at theEword said: "There has never been any doubt that the team at Facebook HQ know what they're doing when it comes to building a successful business. However, over the last year or so research suggests they have begun to lose their teen audience who were once their target market.
"The fact that the company has achieved quite so much in Q1 despite this is impressive, as are its recent purchases including WhatsApp and Oculus, which clearly indicate the forward thinking that has begun to take place at Facebook."