Facebook’s Mobile Success Makes Its Stocks Soar
Stocks of the ever-popular social networking company Facebook realized record performance on Thursday by soaring more than 30%. They approached closely to its IPO price of $38 to $34 per share.
This represents the company’s best stock performance since it went public in May of 2012. Investor confidence in the company appears to be linked to Facebook’s success in the mobile market with not only mobile app advertising but overall user experience and a continuing rise in users worldwide.
Mobile app ads are those where developers of mobile applications advertise their apps available for purchase and downloading to a mobile device. It is a relatively new market but one that Facebook expects continued growth and demand in.
The company was able to implement mobile app ads on mobile devices without jeopardizing the user experience. Advertising on hand-held devices is typically difficult because of smaller screen sizes. It can be annoying for users and cause high abandonment rates.
Advertisers are realizing satisfactory click-through rates as well. Facebook’s COO, Sheryl Sandberg, noted that the figures for click-through rates from ads on the news feed continued to be strong throughout the quarter.
What this means for the company is that mobile app developers see the social networking site as a strong marketing platform and users are showing interest in buying the apps on their feeds.
Mobile app ads account for 41% of total ad revenue for the company. Facebook CEO Mark Zuckerberg expects that this percentage will increase as he notes that there are currently more mobile than desktop users on a daily basis.
Facebook has also seen a significant increase in the number of users worldwide. It was noted that the number of active users each day came in at just under 700 million. This figure represents a 27% percent jump from the year before.
One reason for the rise in users is because Facebook utilizes a rollout strategy in new markets for its mobile app ads across the globe. It takes one geographical market and tests it while analyzing the results. This way it can carefully choose which markets to focus on.
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