Mobile ad business skyrockets Facebook’s Q2 profit

Social

by CBR Staff Writer| 24 July 2014

Active advertisers reached 1.5 million from 1 million last June.

Facebook reported a 138% rise in its profits during the second quarter of 2014 to $791m mainly driven by its fast-growing mobile ad business.

During the quarter, the social media giant's advertisement revenue on mobile devices accounted for 62% of ad revenue, which is an impressive rise, as mobile ads made up almost nothing two years ago.

There was also an increased interest from both advertisers and consumers during the quarter, with its active advertisers reaching 1.5 million from one million last June.

Facebook founder and chief executive Mark Zuckerberg said: "We had a good second quarter.

"Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world."

Overall daily active users rose 19% year-on-year, while mobile daily active users increased by 40%, totalling more then 650 million on average for June 2014.

Reports note that Facebook's push into mobile ads has partly nudged it into profitability, not like fellow social media firms including Twitter.

Facebook's recent actions also signal a move into online retail as well, with the trial of a 'buy' button feature that enables users to make purchases via ads.

As part of efforts to try and maintain its lead in the technology industry, Facebook has made big purchases during the year, acquiring virtual reality headset maker, Oculus VR, in March and snapping up social media firm WhatsApp in February.

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