Facebook is the world’s largest social network, with some 900 million active users. This global trendsetter has changed the way we communicate and is shifting the way companies do business. One of the biggest changes facing Facebook investors today is the growing use and success of mobile ads. Now that more Facebook users sign in on their smartphones and mobile devices instead of their personal computers, companies can take advantage of this on-the-go advertising. The increased performance of Facebook’s mobile ads versus its desktop ads can be attributed to the smaller screen displays, which often lead to accidental clicks. An increase in mobile click-through rates has significantly boosted ad revenue, generating 2.5 times more income than from desktop feed ads.
Surprisingly, even though 60% of Facebook users claim they never click on ads or sponsored content, Facebook still managed to make an estimated $9.51 per person in ad revenue in 2011. During the first quarter of 2012, Facebook raked in $1.06 billion in revenue, of which 82% came from ads and the remaining 18% from social gaming. As smartphone usage and mobile browsing continue to rise, we are sure to see a huge increase in mobile ad performance by Facebook and other websites that follow suit. The following graphic explores the phenomenon of mobile marketing and how Facebook is cashing in.