There's No Stopping Facebook's Growth, Thanks To Mobile Users And Video Ad
Facebook remains unstoppable with its significant increasing number of active users. In the fourth quarter last year, it had been reported to have 1.59 billion monthly active users and gained approximately $5.84 billion.
The figure shows an increase of 14 percent from the earlier quarter with its 1.55 billion users, according to MSN. And the $5.84 earning is another 52 percent hike. Therefore, during 2015, the social network had earned $17.93 billion, 44 percent higher than the income in 2014.
Around 80 percent of the income comes from mobile. It is very remarkable how Facebook maintains the daily active users until today. There were about 1.04 billion people were on Facebook every day, and 934 million of them used their mobile.
CEO Mark Zuckerberg gave more details on the use of Facebook's Groups last year, which led to the trend of making use Facebook to share big events, including the Parris attacks and the refugee crisis. The Safety Check feature was used no less than 950 million people for Events in 2015. There were also around 123 million events generated that year.
Besides that, this decent growth is from the use of its lightweight version for the less sophisticated mobile phones; Facebook Lite, which is used by 80 million people. Zuckerberg also has mentioned that he will invest more in video feature as it has been a crucial part of the social network. There are more than 100 million hours video on Facebook that are intensively watched by users. There might be a more serious action to provide a section dedicated for people who only want to watch videos.
According to Business Insider, analysts from FBR Capital Markets, Bank of America Merrill Lynch, and SunTrust, has mentioned that the three main keys of the business are video ads, Instagram, and Oculus.
78 percent of the ad revenue was from mobile in the last quarter, and eMarketer has estimated that it will increase into 82 percent this year from mobile video formats and Instagram.
Analysts at BAML wrote, "While news feed, app install and carousel ads have strong traction, video ads may be the highest profile new media format for Facebook." While SunTrust analysts wrote, "We think video ads will become the biggest business for Facebook."
Analysts also expect that Oculus, the virtual reality business on Facebook's call, will be another success with 3 million units' sale this year. It will equal to $1.8 billion earning.
There are 2.5 million advertisers and 50 million small businesses on Facebook Pages, higher than the 45 million last quarter, as stated in The Tech Crunch. Billions of comments are made by users on those pages. This has driven to another plan of making Messenger the new method for people to connect and complain about businesses.
Until today, Facebook is far above the other similar services. There is not much threat coming from the competitors. Facebook is still dominating people's time on mobile. The social network seems to keep going up, obviously not for a short time.