As Facebook approaches its 10th birthday, stocks are soaring, thanks to a savvy mobile advertising strategy. Mark Zuckerberg alone made $3 billion dollars this week as stocks rose 16 percent following a glowing earnings call that revealed a successful ad strategy.
The social network isn’t gaining users at the same clip it did in the past – more of a result of market saturation than the teen exodus various studies keep decrying – but what Facebook lacks in user growth, it’s making up for in major revenue increases. During the earnings call this week, Zuckerberg and his team reported a 63 percent increase in year-over-year revenue.
Facebook’s initial foray into mobile did not impress investors, who were concerned the company would not find a way to sufficiently monetize their mobile app. As of January 2014, it’s clear those fears were unfounded. Mobile revenue has grown 41 percent in just a single quarter in 2013, and it now accounts for 53 percent of all of Facebook’s ad revenue. This means what was perceived as Facebook’s Achilles Heel has turned into the company’s golden goose.
Facebook’s dominance in mobile advertising, along with the debut of attractive new standalone new reader app called Paper, have given investors confidence that the world’s largest social network isn’t going anywhere, especially as it continues to develop more standalone apps that provide additional mobile advertising opportunities.