Facebook's Sales Soar With Mobile Advertising

By Jenn Loro - 29 Jan '16 10:20AM
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Social media giant Facebook has been making an effective and profitable use of the mobile digital revolution since the company went public four years ago. Currently, the company is a force to be reckoned with- a mobile advertising powerhouse that's raking in $5.64 billion in revenue in the fourth quarter.

After Facebook's quarterly results were released, the world's largest online social network has exceeded business expectation.

Boosted by increased flow of revenue from its mobile cash cows, the company's trading value is now estimated at $38 billion according to Yahoo News.

In addition, the price of Facebook's traded stocks just soared 14% to $107.95. In terms of market capitalization, social networking site is now worth $300 billion making it as the world's fourth most valuable tech company with Apple in the lead ($519 billion).

How Facebook Does It

To dominate the mobile advertising landscape, Facebook invested a large part of its wealth on apps which it believes are promising and game-changing.

According to Forbes Magazine, 3 of the top 5 most downloaded apps on iPhones in the US are owned by the company: Facebook (main app), Instagram (acquired for $1 billion), and Messenger (main app's spin-off).

In the age of smartphones, Facebook's omnipresence in the internet digital world allowed it to get 80% of its total ad revenue from mobile advertising.

"It signifies the importance of what they're providing to advertisers. They're making big investments and evidenced by their quarterly performance it seems to be working," said Evercore ISI analyst Ken Sena as stated in a news article by Reuters.

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