Its budget for advertising to smartphones and tablets will be twice this quarter over last.
The mobile marketing budget for Facebook’s next quarter has just been revealed, and it has shown that the leading social network intents to spend twice as much this quarter than it did during the last one in order to appeal to smartphone and tablet users.
The massive organization has made wireless device using consumers one of its main targets.
Mobile marketing has provided Facebook with a significant amount of growth over the last few months. However, Wall Street predictions had still made aggressive estimates that had not quite been reached by the social network’s actual achievements. Therefore, it has now decided to widen its smartphone reach by diving head first into massive advertising efforts so that it will have greater appeal to its current membership, which is made up of over one billion people around the world.
The focus of the mobile marketing will be to encourage those users to access their accounts by way of their devices.
This will continue Facebook’s recent mobile marketing trend, which has seen that business increase at the fastest pace that has been established since it first went public in May 2012. The growth in that area has boosted the company considerably, as it has allowed it to bring in revenues that increased by 40 percent. In that area, the company was able to exceed the Wall Street targets, showing some meaningful promise.
Once it made its announcement, Facebook’s shares were able to keep themselves steady, having set at $31.24 (US). This helped the shares to recuperate after having fallen by 8 percent, achieving a notable after hours recovery. Aaron Kessler, a Raymond James analyst, explained that for Facebook, it had an “Overall solid quarter but maybe high expectations going into the quarter.”
The announcement made by Facebook explained that of its total ad revenue, 23 percent is being generated as a result of mobile marketing. This is a tremendous growth over the previous quarter, which had seen only 14 percent. Kessler explained that there was more expected from Facebook in that area, and that “Mobile revenue was expected to be a little higher.”