Facebook's mobile ad growth is a model to other social websites - analysts
The success of Facebook Inc in mobile advertising made it Google's strongest competitor. Analysts said that Facebook did not only succeed, it also became a model for other social networking sites like Twitter Inc., Pinterest Inc. and Snapchat Inc.
Last quarter, Facebook was able to generate 41% of its earnings from mobile ads, up from last year's 14%. Wedbush Securities Inc.'s analyst, Michael Pachter, said that the mobile application of Facebook gained support from several advertisers due to the fact that it was able to closely tie the ads with the activities of its 819 million global users.
According the CEO of IgnitionOne, Will Margiloff, smaller social networking sites must also build sufficient scale that would allow them to do what Facebook has been doing. However, he said that there are little online services with enough potential like Facebook. "Facebook's strategy can't be replicated elsewhere, except maybe Twitter. The platform itself lends itself well to mobile as it already has so many mobile users," he added.
Blinq Media LLC's chief operating officer, Luis Caballero, said that marketers increased their budget for the mobile app of Facebook to around 24% last month from only 10% in January.