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.

Will Facebook Be The New Online Advertising Tsar?

Everyone is elated or alarmed about facebook growth and the focus on facebook advertising is no different. Techcrunch even has a series of articles discussing about "how Facebook will eat Google's lunch" and as a part of this series, they had a nice article about;
How facebook over take Google in advertising revenue, a prediction of course.
But it is again based on other estimated ad revenues that facebook might have received.Again, I have never clicked on an facebook ad (I have clicked on Google Ads) but that might be because I spend much less time at facebook than most people.
The estimated ad revenue for facebook is estimated to be about $2 Billion in 2010 and over $4 Billion in 2011.
The article I am talking about is written by Hussein Fazal CEO of AdParlor, who advertises on facebook, yes on the right hand column. You can find the truth about facebook advertising and revenue from people who handle some of the advertising on facebook
Techcrunch
Adparlor

Facebook Ads Perform Five Times Better!

Mashable is telling us that facebook ads are doing much better than standard banner ads. According to a study done by Webtrends on more than 11,000 ad campaigns on facebook, They found out that the average click-through rate (CTR) for Facebook ads in 2009 was 0.063% and 0.051% in 2010 — substantially more than the industry standard, also, they cost more, $0.27 to $0.49, CPC, Cost per Click. But again, these numbers as per mahable as there was no links to the Webtrends study. Perhaps Webtrends did not publish it.

Mashable