Facebook Inc (FB) Changes The Face of Advertising as Mobile Ad Revenue Explodes

Historically speaking, Facebook Inc (NASDAQ:FB) may have well been the first-of-its-kind social networking site that let university students to post status updates. Today, however, it is larger than the local grape-vine; for, it’s morphed into an inexpensive way for the world to connect and network online, deriving ad-based revenues exponentially!

As Facebook becomes the center of digital lives today – with personal snippets being juxtaposed by news feeds – advertising here reaps businesses whether big-or-small, local-or-global, high returns on their investments.

Facebook reinvents advertising ‘selectively’

Facebook Inc, it cannot be denied, has changed the tenets of advertising as it interacts directly with potential target audience, end-user.

Advertising on Facebook electrifies most businesses essentially because of the intimate insight they gain of user preferences due to advanced analytics of user shares, likes and content uploads.

Besides, Facebook advertisements are found ot have the same ‘emotional impact’ as they retain their form, irrespective of the device(s) used- desktop or mobile. This does not remain the case for other websites as business ads need to be resized for the smaller-sized mobile display screens.

What this has meant for Facebook earnings?

Facebook advertisements which despite being personalized and target-driven are also form-factor free, which indicates that these could become premium products, driving higher ad rates.

By 2016, reports research firm eMarketer, world-wide mobile revenue for Facebook Inc would drive three-fourth (75%) of the company’s total earnings. A conservative estimate indicates that this could nearly be $18 billion as 1.34 mobile users are likely to emerge as Facebook aggressively pursues emerging-market with Internet.org. India is expected to be the largest mobile-based Facebook accessing market, closely followed by Indonesia, Brazil as well as Mexico, according to eMarketer data reports.

Facebook has been building its mobile user analysis arsenal as well, through recent acquisition of an India-based mobile analytics start-up –LittleEyeLabs, even as Twitter Inc (NYSE:TWTR) hopes to compete in the same space with the acquisition of Zipdial, another India-based mobile marketing startup!