A Short Reminder About Facebook’s Breakneck Mobile Ad Growth

Remember when Facebook didn’t have a mobile ads business? That was literally only a year ago.

Robert Galbraith / Reuters

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Facebook, after not even having a real mobile ad business at the beginning of last year, is now set to take nearly a fifth of the mobile ad share this year, according to a new report.

Facebook will have about a 16% share of the mobile advertising market in 2013, eMarketer said today in a new report, up from about 5% in 2012. That year, Facebook had just decided to flip the switch on mobile News Feed advertising, which went from making $0 to about $3 million a day (CFO David Ebersman said on the Q3 earnings call in October last year) over the course of two quarters.

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And it’s the main reason the stock has blown past its original IPO price of $38 — when its outlook was a little more dubious as its desktop ads business stalled — to a nearly $100 billion valuation once again.

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Mobile advertising revenue now accounts for 41% of Facebook’s advertising revenue as of the end of the second quarter, as more than 450 million of Facebook’s billion-plus users check the mobile app once a day.

Also notable: Most of the new share is coming from providers other than Google — which still has the majority share and is still growing — and Twitter’s budding mobile ad business.

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