Social media giant Facebook announced last week that its revenue surpassed $5bn (£4.1bn) for the final quarter of 2015.
The company announced its financial figures on January 27th which saw actual revenue surpass the forecasted figures and a 51.7% rise in quarterly revenue compared to the same period of 2014. Its net income also rose significantly, more than doubling to $1.56bn (£1.1bn).
This meant that its annual figures for 2015 were also impressive. The enterprise revealed that its revenue rose 44% to $17.93bn (£12.6bn).
Facebook’s increase in revenue is largely down to a change in its advertising formats, as well as an improved mobile ad campaign, both of which contributed significantly to these statistics. The growth of video has also made an impact, with over 10 million hours worth of video being watched on the site every day. This has led the company to believe it is the most popular smartphone app available.
Of the back of the news, CEO Mark Zuckerberg told company investors that he was happy with Facebook’s continued growth. The number of users was up 14% to 1.59 billion users in December 2015 from 2014. Furthermore, 1.44 billion of these users had the network’s app installed on mobile devices, a 21% increase on last year. This signifies the importance of mobile devices, as well as highlighting the success of the company’s mobile advertising campaign.
The result of this announcement meant that shares in the company rose on the stock market, which had already risen by over a quarter in the last 12 months alone. Experts had predicted a good year for Facebook, but the outcome has been much stronger than anticipated.
Zuckerberg has also said that although its site and mobile advertising has been strong this year, the company will also be focusing on other areas, such as the continued growth of video, virtual reality and even artificial intelligence.
What does this mean for the company? With the social media site posting record revenue for this period, many experts and analysts believe that it puts Facebook in poll position to overtake Google and become the internet’s most powerful company and put an end to the search giant’s dominance of Silicon Valley.
With mobile advertising contributing so significantly to Facebook’s success over the last 12 months, and the fact that 1.44bn users of the site are using its mobile version, highlights to companies all over the world and in different sectors that the world of business is quickly moving to mobile rather than desktop platforms.
For businesspeople and entrepreneurs, this means that it is becoming essential for your business to be easily found and navigated on mobile devices. Google has already recongnised this by having a separate ranking for the mobile version of the site. So, ensuring that your business is mobile friendly could help you drive your own sales and revenue figures.
Digital agencies such as Engage Web are devoted to helping companies become more mobile friendly and enhancing their online presence through carefully tailored strategies for both online marketing and social media campaigns.
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