The report, released by the social network on Wednesday, said Facebook’s blockbuster earnings of over $7 billion were largely due to its strong mobile ad revenues as the company ventured into new services.
“We had another good quarter,” said Facebook co-founder and chief executive Mark Zuckerberg. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Facebook Revenues Jump 56%: The social media giant continued to gain ground in the third… MaxTicketDeal) November 2, 2016
From July to September, the Menlo Park, California-based company said it posted advertising revenue of $6.8 billion, a 59 percent hike from a year earlier. 84 percent of the amount came from its mobile advertising.
During the third quarter, Facebook’s earnings rose sharply to $2.38 billion (82 cents per share) from $896 million (31 cents per share) last year while its total revenue increased 56 percent to $7.01 billion.
As of Sept. 30, Facebook – the world’s number two digital ad publisher (behind Google) – claims monthly users of 1.79 billion, an increase of 16 percent from a year earlier.
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“People are spending more and more time on mobile, especially video,” David Wehner, Facebook’s chief financial officer, told the Associated Press.
Research firm eMarketer sees Facebook’s global ad revenue to hit $25.9 billion this year from $17.1 billion in 2015. It also expects Facebook to make an average of $15.83 from each user this year.
In 2018, according to eMarketer, mobile video ad spending in the United Stated will hit $7.1 billion, a huge jump from $4.5 billion this year. The figure represents about 10 percent of the total amount spent on mobile advertisements.
As programmatic advertisement spending in the U.S. will continue to surpass targets with double-digit growth for the next few years, the research company also sees Facebook getting the largest share.
EMarketer expects Facebook to have the biggest share of U.S. programmatic display dollars until 2018 with $11.10 billion or 43.7 percent of the total revenues. Google will remain a distant second with $2.39 billion.
This year, programmatic display ad spending will reach $25.23 billion, representing 73.0 percent of all display ad spending in the U.S.
“Programmatic buying is becoming more popular as marketers increasingly take an audience-centric approach to their display ad buys,” said Lauren Fisher, eMarketer senior analyst.
“Publishers are becoming more comfortable with programmatic technology, and therefore more willing and able to package audiences in this manner. That has accelerated spending in mobile and other formats that have traditionally shied away from programmatic, such as video.”
