Facebook Mobile Ads Boost Numbers Not Confidence

Facebook Collage

Facebook imports earnings and exports mobile ads.

Source: Forbes | Facebook Survives Earnings Scrutiny With Ad Growth And Expansion Efforts

Facebook saw significant growth in ad revenues as 2012 came to a close.  Mobile ads in particular jumped in contribution from 14% in the third quarter to 23% in the fourth quarter.  Regardless, investors are still wary as margins have shrunk due to growing expenses including new hires.

Facebook has also focused on targeting ads for users and will attempt to increase ad traffic per page view over 2013.  To do this however, the company will hire aggressively to support the strategy further thinning their margins.  Facebook, however, has certainly found a new avenue for revenue and it will be interesting to watch how they develop its potential.

Link: Facebook 2012 Financial Report

About Robert Patterson

Robert Patterson is an MBA candidate in the Class of 2014 at the Zicklin School of Business of Baruch College.
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