Facebook Inc (FB) Ad Revenue : Mobile vs. Desktop

Facebook mobile ad revenue will exceed its desktop revenue next year, according to a recent report. The company’s mobile ad revenue is surging sharply, and is showing no indications of slowing any time soon.

Facebook Inc (FB) Ad Revenue : Mobile vs. Desktop

Rising mobile users for Facebook

Back in 2012, while filing its IPO, Facebook (FB) said that it did not generate any meaningful revenue from its mobile product. By 2013, around 45% of Facebook’s $6.99 billion ad revenue was contributed by mobile ads. But by 2016, Facebook (FB)’s worldwide mobile revenue is expected to reach 75% of the total, according to new estimates from the research firm eMarketer.

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These are startling figures for sure, and if eMarketer predictions holds true, then Facebook is on track to post $18 billion in revenue for 2016. Furthermore, the report suggested that the social networking site could also sell mobile ads at a premium compared to the current mobile ad rates.

Mobile ads across the world are selling at a lower price as against the desktop ones for more than one reason. Most important among those reasons is that the mobile ads get fewer sales compared to desktop ads as mobile has less space to advertise.

eMarketer principal analyst Debra Aho Williamson said, “Facebook has been a leader helping marketers to transition to mobile advertising.” Williamson added that since the social networking experience is basically the same on every platform, advertisers do not need to redesign the “wheel” to place mobile advertising.

Rising popularity in emerging markets

Facebook (FB) will have 1.34 billion mobile users by 2018, according to eMarketer. As per the report, the largest chunk of such users comes from the United States with 123.1 million users currently accessing the social network on their phones. India is second with 101.5 million users and Indonesia third with 62.6 million users.

Also, by 2017, India will overtake the U.S. to have the largest number of Facebook mobile users, up from 80.6 million mobile users in 2014 to 167.7 million by 2017.

In emerging markets, the growing popularity of Facebook (FB) is primarily due to a series of acquisitions and strategic plays by the social networker. The company launched its Internet.org initiative to connect the “the next 5 billion” to the internet. Facebook also recently snapped up Bangalore-based startup Little Eye Labs, which makes mobile app analysis tools.