Facebook has smashed its forecast rise in revenue, from $3.2 billion in the third quarter of 2014 to $4.3 billion this year. Mobile makes up a massive 78% of total ad revenue – a figure its also reached ahead of predictions.
A new report from Marin Software – Digital Marketing Managers census – concurs, showing that that what Facebook is achieving is not the norm. The annual census reveals that across the board in the UK, online spending levels are not where they need to be.
On average, 25% of all UK media consumption is via mobile devices, yet only 10% of all ad spend goes on mobile. 61% of respondents to our census said more money should be shifted from offline marketing to digital marketing, up 27% from 2014. Just 35% think their organisation has the balance between on and offline spend right.
Facebook on the other hand have splashed out on mobile businesses such as WhatsApp and the Messenger app, as well as the Oculus virtual reality business this year. Rather than leaving them cash-poor, the investment is paying off. The latest updates to its ad formats, set to significantly improve the in-Facebook shopping experience, are sure to improve the service for mobile shoppers further.
Facebook are not alone in realising the importance of mobile but it does appear to be using the device particularly effectively to reach its ever-increasing user base. Advertisers looking to enjoy similar success need to make sure that mobile is getting the share of budget it really deserves.