Facebook profits from mobile advertising


Watch: As Facebook reports a rise in mobile advertising revenue, analysts say Asia offers the firm plenty of room to grow further.

There have been doubts over Facebook’s ability to sell adverts on mobile devices, not least due to their small screen size. Investors had feared that its growth may be hurt as a result.

However, Facebook said 30% of its $1.25bn (£803m) advertising revenue in the first quarter came from mobile.

It reported a net profit of $219m for the January to March quarter.

“We’ve made a lot of progress in the first few months of the year,” said Facebook’s founder Mark Zuckerberg.

But increased spending on infrastructure, together with the fact the firm now employs more people than it did a year ago, contributed to a 60% jump in costs and expenses to $1.1bn in the quarter.

‘They are delivering’

Ever since its launch, Facebook has enjoyed tremendous growth and has gone on to dominate the social networking sector.

However, an increasing number of users are accessing the site on their mobile devices such as smartphones and tablet PCs.

The screens of these gadgets are much smaller compared with traditional PCs or laptops. That had led to concerns that Facebook may find it tough to sell advertising space on these and turn its online dominance into profits.

These concerns have hurt the firm’s share price ever since its high profile initial public offering (IPO) last year.

However, analysts said the latest numbers indicate that the firm is keeping up with changing patterns.

“They are making the transition to mobile faster than anyone anticipated,” said Arvind Bhatia, an analyst with Sterne Agee. “It seems like they are delivering.”

According to Facebook, it generated mobile advertising revenue of almost $375m, during the period, up from nearly $330m in the previous three months and approximately $150m in the three months to 30 September 2012.

‘In full force’

Facebook also reported an increase in users who access Facebook every day, these, on average, rose 8% from December to 655 million in March.

That had been another area of concern for investors, amid talk of so-called “Facebook fatigue” among users.

Analysts said the numbers indicated that the site continued to remain popular.

“The network remains in full force,” said Brian Blau, an analyst with Gartner. “You have to give them a lot of credit.”

                                     Facebook logo on Nasdaq board
Facebook now has 1.11 billion monthly active users

For its part, Facebook has taken various steps in recent months to make sure it keeps its dominant place in the sector.

It has overhauled its newsfeed and search feature, and launched Facebook Home, an app for Android phones.

The app, which effectively replaces the phone’s home screen with a Facebook feed and chat options, has received mixed reviews from users.

Some analysts said that the firm had managed to fend off competition in the sector.

“There is always going to be something new in social,” said Nate Elliot of Forrester Research.

“The question is how much of it is a threat to Facebook? All Facebook can do is keep those users coming back and make money off those users.

“And Facebook seems to be doing both of those things reasonably well.”

Source: http://www.bbc.co.uk/news/business-22376553

Using Facebook for small busineses

Over 800 million people are currently on Facebook, so it’s no surprise every business wants to use the social networking site to drive their business. But how do you create a community and engage with them effectively? Kirby Koo, Manager of Small and Medium Business Growth at Facebook gives us some top tips that will help you get the most out of your business’ Facebook Page.

1. Get to know your fans

The best way to get your fans to talk about your business with their friends is to understand what they care about. Use Page Insights regularly to track which posts sparked conversations and sharing, then try to keep posting this kind of content.

It’s worth remembering that no matter how engaging your posts are, not all of your fans will see them in their News Feed. To make sure that more people see your posts, you can use Page Post ads which are a great way to reach a wide audience and get more people to Like and engage with your Page. And because these ads are telling people what their friends are Liking and interacting with they are much more effective because of that social context.

2. Stand out from the crowd

Don’t forget that people’s News Feeds contain a lot of information and they are busy so probably won’t have time to read everything. Your posts are a reflection of your business but keep them short and snappy, ideally less than three lines. Pictures are also a powerful way to grab people’s attention so try to include related images when you post.

3. Post regularly

It’s important to keep up the conversation with your fans so that you build a real relationship with potential. You wouldn’t stop talking to a friend for six months and then try and start up a conversation out of the blue, so you should treat your Facebook Page in the same way! There are no hard and fast rules for the optimum amount of posts and only you know how often your fans want to hear from you. If you run a small shop for example you may want to post a few times a week when new products come in, however often you decide to post, make sure you post consistently.

4. Start conversations

Your Page should be a place for conversations between you and your fans. You can ask people questions and make them feel involved with your decisions. Your Page is a real online community, so you can use it as a way to gather feedback about your business.

Facebook’s Questions feature allows you to ask your fans for ideas about how to improve your business. People can agree with an existing answer with a single click, or add a different response – this is incredibly easy and means your customers can engage with minimal effort. “Fill in the blank” posts can be particularly useful if you want to give your customers a very simple way to engage with your post by asking them to finish your sentence.

5. Reward your community

There are thousands of businesses on Facebook so you need to stand out from the crowd, you could reward your fans for liking your Page by offering competitions and special offers. Think about announcing new products to fans on Facebook before anywhere else, giving fans early access to sales, or posting exclusive photos from events on your Page.

6. Be relevant

Your fans will be more likely to notice your business’ Page if you post about relevant issues, post about special offers and mention the issue of the day – whether that’s the Oscars or Mother’s Day.

Visit facebook.com/FacebookMarketingUK to keep up with how you can use Facebook to market your business

Picture credit: Rex Features

Taken from: http://www.stylist.co.uk/stylist-network/how-to-use-facebook-for-small-businesses