In an article on Re/Code, Kurt Wagner reported that Facebook Inc (NASDAQ:FB)’s mobile ads business is increasing massively. Since Facebook Inc (NASDAQ:FB) plunged into the mobile ads business, this specific industry has grown into a gigantic $5 billion business. Facebook Inc (NASDAQ:FB) quarterly earnings are coming today and Wagner thinks that Facebook Inc (NASDAQ:FB) will report a 85% increase in ads business as compared to the last year. Facebook Inc (NASDAQ:FB) has a massive edge in the ads business: mobile ads. Google and Yahoo are unable to seize this area but still, Google remains the juggernaut of the ads.
Mobile ads are around two third of the Facebook Inc (NASDAQ:FB)’s overall ads business, which depicts the vitality of the mobile ads for social media companies. Twitter is nowhere close to Facebook. Facebook Inc (NASDAQ:FB) is leading in the mobile ads because of the enormous grip on user data. It has Instagram, WhatsApp and many other apps under its belt, which are installed by billions around the world on their mobiles. It recently forced its users to install Facebook Inc (NASDAQ:FB) Messenger. The fruit of all these apps comes as a vast chunk of user data which does not go to competitors.
The source said that WhatsApp isn’t making money for Facebook. Instagram has rolled out its ads plans but advertisers are letting things cook in order to get a better picture. Facebook Inc (NASDAQ:FB) is reorienting itself as a mobile first platform and its next billion users are likely to come from mobile platforms.
Facebook Inc (NASDAQ:FB) has already announced that in 2015, the company spending will go up by 70%. Facebook Inc (NASDAQ:FB) is on an acquiring, hiring and development spree.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
Suggested Articles:
