Facebook internet advertising revenue dominated by mobile

Anne Freier

In Mobile Advertising

November 1, 2016

Facebook continues to boost its advertising business and increase ad revenues and its user base, despite a setback in video measurement this year.
New research from eMarketer reports that overall estimated ad revenues at the social media firm will reach $26bn in 2016, up from $17.08bn in 2015. By 2017, that share is likely to reach $33.8bn.
Undoubtedly, much of the growth is coming from mobile advertising, set to reach $21.9bn this year. That’s an increase of 66.6% from 2015. More impressively, it’s just shy $4bn of representing almost all of the company’s total ad revenues ($26bn). By 2018, it is projected to reach $37.98bn in mobile ad revenue.
Facebook mobile internet ad revenues growing
Source: emarketer.com
Having saturated the US market, Facebook ad revenues are now coming increasingly from outside the country. 54% of the ad share this year has been generated across countries other than the US.
Debra Aho Williamson, Analyst, eMarketer, explains:
debra aho williamson

“Facebook is still going pedal to the metal when it comes to building out its products and services. Its flagship service is still growing in every metric that we track, and its other services, such as Instagram, WhatsApp and Messenger, are also performing well. Oculus has had some challenges gaining traction, but these are very early days for virtual reality in general.”

In September this year, Facebook was criticised after admitting to inflating its video viewing times, causing advertisers to demand access to the data.
Williamson says it was a “hiccup”. She adds:

“Though eMarketer doesn’t believe the revelation will cause brands to pull back their Facebook spending, we expect that in the future there will be a push for more rigorous third-party measurement of ad performance on properties like Facebook.”

Meanwhile, Facebook subsidiaries such as Instagram, WhatsApp and Messenger continue to increase in popularity and reach new monetisation goals. Messenger is projected to reach over two in five mobile users this year and continues to grow year-on-year.
Messenger grows userbase
Source: emarketer.com
The company also announced some changes across its platforms such as Messenger instant buy buttons and native payment options.
It looks like Facebook is making an effort to expand its user and brand partner products and they are certainly proving to be popular among advertiser.