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Neon Tommy - Annenberg digital news

Facebook Revenue Increases In Third Quarter Report

Jackie Mansky |
October 23, 2012 | 2:39 p.m. PDT

Staff Reporter

Zuckerberg's Original Facebook Profile (niallkennedy, Creative Commons)
Zuckerberg's Original Facebook Profile (niallkennedy, Creative Commons)
Facebook posted a better than expected third quarter earnings report on Tuesday, with the social media giant seeing a 32 percent revenue jump, helped by gains in mobile advertising.

Facebook said it generated 14 percent of its advertising revenue from mobile ads during the quarter, the Washington Post reported.

Many previously expressed concern on the company’s ability to find a viable mobile advertising platform to target its users, 604 million of whom log on from mobile devices.

Despite calling itself a “mobile-first company” the social media giant ranks only sixth in U.S. mobile ad revenue for 2012m the Los Angeles Times reported.

Competition from Google is not helping, NASDAQ reported, calling the rising concerns over the effectiveness of Facebook ads as compared to Google's AdSense a "headwind” lately.

However, as seen by the company’s third quarter earnings report, Facebook is making inroads.

Earlier this year, the company began showing its users ads on mobile devices called "sponsored stories" Forbes reported.

Wedbush analyst Michael Pachter said several new or modified products will likely boost revenue growth. Besides the mobile ads, these include the Facebook Exchange, which lets advertisers target users in real-time, based on outside websites they visit, the Seattle Times reported.  

Other predictions abound as to how Facebook can monetize its site without losing user loyalty.

On CNBC’s “Fast Money,” Martin Pyykkonen of Wedge Partners said he expected Facebook to add a “want” button along its existing “like” button, to help facilitate e-commerce — and larger revenues.

Analysts covering the stock market remain cautious about Facebook's mobile monetization initiatives, NASDAQ reported.  While NASDAQ reported that analysts expect revenue from mobile to positively effect Facebook in the long-term, analysts also expect revenues from mobile advertising to restrict some expansion in the near term.

Read more of Neon Tommy's coverage of Facebook here.

Reach Staff Reporter Jackie Mansky here.



 

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