Lots to like about social giant’s ad revenue

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Facebook’s global revenue in Q2 reached US$2.9 billion, an increase of 61% compared with $1.8 billion in the second quarter of 2013, according to a report supplied direct to M+AD from Facebook Australasia.

Total advertising revenue was $2.68 billion, a 67% increase from the same quarter last year. Mobile advertising revenue grew 151% and was 62% of total ad revenue. Total payments and other fees revenue was $234 million in Q2.

Facebook’s usage continues to grow:

  • Daily average users (DAUs) were 829 million as of June 30, 2014, an increase of 19% year-over-year.
  • Monthly active users (MAUs) were 1.32 billion as of June 30, 2014, an increase of 14% year-over-year, and 63% of those MAUs visit Facebook every day
  • Mobile MAU’s were 1.07 billion as of June 30, 2014, an increase of 31% year-over-year. Mobile DAUs were 654 million on average for June 2014, an increase of 39% year-over-year.

Highlights from the advertising side of the business:

  • Facebook now has over 1.5 million active advertisers
  • Facebook continues to make progress across all segments of marketers and continues to focus on advertising product development to serve each segment’s specific needs
  • SMBs continue to utilize Facebook as a key channel to build businesses
  • Facebook has over 30 million active small businesses, including 19 million on mobile
  • Chumbak, a maker of India-inspired products, uses FB as its leading marketing channel. FB is responsible for 35% of online revenue and 38% of their website traffic. Their Facebook ads deliver a quintuple return on advertising spend and have helped the company grow to more than 150 employees in three offices
  • Facebook continues to work with brands to create solutions that meet specific needs of their product and target audience.
  • P&G’s Gillette worked with FB and agencies IBS and Mediacom, to launch its Vector 3 razor to men in India. 80% of the 100 million Facebook users in India are on mobile, and a majority of these are using feature phones. This was FB’s first feature-phone-only Facebook campaign in Asia. It reached 60% of Gillette’s target audience and generated significant lift in both message and ad recall
  • Facebook played a key role in helping marketers magnify their messages around the World Cup. Facebook was an important part of this global event, with 350 million people joining the conversation, generating three billion interactions. The final was the single most-talked-about sporting event in Facebook history, generating 280 million interactions from 88 million people. Brands such as Visa, Nike, Ford and McDonalds capitalised on this global conversation. McDonald’s worked with agencies OMD, Framestore and Arc as well as Facebook’s Creative Shop to produce 30 videos that used French fries as players – “Fry Futbol” recreated the most spectacular World Cup moments and ran them as videos the very next day. This campaign reached 125 million people in more than 158 countries
  • Continued focus on developing the right products for marketers of all sizes
  • Facebook Custom Audiences capabilities – which enable better targeting – are being adopted quickly and are now being used by 91 of the AdAge 100
  • Premium Video ads: To date, FB has run about a dozen campaigns and the early data shows promising results. FB will continue to roll out this product slowly and carefully
  • Instagram ads: similarly, Facebook is seeing positive early demand from marketers and “we’re rolling out these ads carefully as well”
  • Audience Network: encouraged by the early response
  • LiveRail acquisition: FB is investing in tools that can improve the relevance of video ads across the web

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