Facebook reported its Q3 financials yesterday, with revenues of $1.26bn and a net loss of $59m. Wall Street reacted positively, as the social network beat its expectations.
It was clear from the results and the ensuing analyst call just how important mobile is for Facebook. “As proud as I am that a billion people use Facebook each month, I’m also really happy that over 600 million people now share and connect on Facebook every month using mobile devices,” said CEO Mark Zuckerberg in a statement.
14% of Facebook’s advertising revenues in Q3 came from mobile, meaning just over $150m. In the analyst call, Zuckerberg hit back at suggestions that Facebook has problems monetising its rocketing mobile use.
“Most people underestimate how fundamentally good the trend towards mobile can be for Facebook,” he said citing three positive trends. “First, mobile will give us the opportunity to reach way more people than desktop. Second, people on mobile use Facebook more often. And, third, long term, I think we’re going to monetize better per amount of time spent on mobile than desktop.”
Zuckerberg went on to say that Facebook’s mobile users have a 70% likelihood of using the service on a given day, versus 40% for people who only use the website. He also gave some detail on how Facebook sees mobile advertising evolving.
“On mobile, we believe ads will be more like TV – high quality and integrated into the experience rather than off to the side,” he said. “Mobile is a forcing function for us to rethink these experiences to be in mind.”