Based on a recent report published by New York Times, Facebook’s earnings have been propelled by the mobile ads that the company has introduced. The strategy that the social network is using seems to have had good results as $375 million were generated since the beginning of the year.
Facebook was severely criticized by analysts and investors because the social network did not display any advertisement on its mobile applications. The mistake was first noticed after the company went public diminishing the price of its shares. Mark Zuckerberg and his team of developers have started to address this issue at the beginning of 2013 and many changes have been enacted on the social network.
While analysts were prone to criticize most of the changes that Facebook made, the report that the company presented on Wednesday proved that the strategy is effective. The recent figures show that the social network has cashed in $375 million revenue in the first three months of the year. That is a lot more than analysts initially predicted.
30 percent of the declared advertising revenue is due to the mobile strategy adopted by Facebook since the beginning of the year. During the same period last year, the company registered only 23 percent advertising revenue. Facebook’s chief executive concluded his Wednesday’s declaration by reassuring analysts that the revenue will continue to grow in the future due to the mobile advertising. Although he did not disclose too many details about his future projects and goals, Mark declared that he plans to create the perfect mobile product and make money out of it.
Analysts are hard to impress; they didn’t seem to be taken aback by the numbers presented by Mark Zuckerberg on Wednesday. They have outlined the fact that the social network is currently spending a lot of money on the development of new features, instead of praising the mobile revenue. Share prices didn’t seem to be affected by the report, either; prices swung up and down after the figures were disclosed and eventually ended at $27.51.