Thursday, January 31, 2013

Did Facebook Failed To Impress Investors With New Ad Revenue?

Facebook sort of WOWed wall street with increased ad revenue, mobile ad revenue. Facebook reported mobile ad revenue increase from about 14% in Q3 2012 to 23% in Q4 2012. Even though ad revenue for Facebook is promising, the cost of the operations seems to have blown the air out of the balloon.

Cost mainly comes from hires and changes to infrastructure. Company needed more people in the new Facebook gifts, Facebook graph search, custom audience and others. Of those, you have heard and read enough about the Graph search but I like the 'custom  audience'. I am sure Facebook will increase ad revenue with this product. Custom Audience improves ad targeting by  bringing together Facebook’s user data and customer data from advertiser. There could not be any better resources for advertising, and it might help in the Google vs Facebook Advertising fight. Sphere: Related Content

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