Facebook has noted yet another spike in revenue that beat estimates after stepping up its mobile advertising efforts over the past few months.
Known as the largest social network in the world, it reported Q3 sales of $4.5 billion (c. £2.97 billion), compared to the $4.37 billion (c. £2.89 billion) analysts had predicted, according to research by Bloomberg.
Mobile advertising remains strong
Meanwhile, the number of monthly users on the site jumped by 14% to 1.55 billion; with 1.01 billion people logging on to their social media site of choice on a daily basis.
Facebook also brought its marketing prowess to Instagram for the very first time during Q3, while also boosting the number of video ads on its main app.
The firm has also announced that it has spent a great deal of time improving the quality of video ads and the price, as CEO Mark Zuckerberg invests cash into WhatsApp and a number of other scientific projects, including artificial intelligence and virtual reality.
Josh Olson, Analyst at Edward Jones & Co, said mobile advertising is at the core of Facebook’s business and remains strong.
In fact, this side of the business has remained so robust that the California-based Facebook saw its shares increase by 5.2% in extended trading. The stock also further advanced by 1.3% to $103.94 (c. £68.71) in New York – resulting in a 33% increase this year alone.
Investing in the future
David Wehner, Chief Financial Officer at Facebook, said the company will continue to spend money on artificial intelligence and virtual reality in order to cater for the future demands of users.
As a firm Facebook is “investing aggressively in the future”, he added.
The business has also been working hard to convince advertisers that it is the best platform for reaching new customers on their mobile devices – this is because so many people sign into their Facebook accounts using their real identities; making this the perfect platform to track and target users.
With Instagram entering into Facebook’s advertising system, the firm has also been able to expand its ad audience by 400 million.
Facebook has more than 900 million users on WhatsApp and 900 million on Messenger, making it the go-to place for many marketers.
It is expected that Facebook will account for 17.4% of global mobile-ad spend in 2015, with the market as a whole set to reach $72.1 billion (c. £47.66 billion), according to figures from eMarketer.
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