Facebook Mobile Swells to 41% of Its Ad Sales

Digital giant's Q2 revenue hits $1.81 billion, 'an astounding surge'

Facebook's mobile ads accounted for 41 percent of its $1.62 billion in ad sales during the second quarter, during which the company reported $1.81 billion in total revenue, beating Wall Street expectations on Wednesday.

For comparison, mobile was 30 percent of its ad sales during the first quarter. Facebook's monthly active users on mobile skyrocketed to 819 million during Q2, a 51 percent increase year over year.

Such multipronged growth should help, as CEO Mark Zuckerberg said during an earnings call, "dispel the myth that Facebook can't make money on mobile." Mobile app ads were key to propping up the line item by 11 percentage points, he said.

Those with a stake in the social-mobile space sounded thrilled with the results. Craig Palli, chief strategy officer at the mobile app firm Fiksu, said that he "expected an increase, but the [double-digit jump] in mobile share of ad revenues in a single quarter is an astounding surge."

Raj Aggarwal, CEO, Localytics, added, "Facebook clearly understands how to engage with users via mobile."

Facebook's $1.6 billion in ad sales for Q2 represents a 61 percent lift year over year. COO Sheryl Sandberg suggested the digital giant was also making big strides in local due to the platform's Promoted Posts product. Some 300,000 business pages bought promoted posts during the quarter, she said, "20 percent of which were new advertisers."

Sandberg said advertisers are moving from the right-hand rail units to News Feed options and anticipates that trend to continue because the latter placement lends itself to the mobile experience.

"Comparatively, for mobile and desktop, News Feed [ads] are creating eight times more engagement and 10 times more recall," she said. "We've long believed [local business] is the Holy Grail of the Internet. … But it's really difficult getting local businesses online."

Overall revenue increased more than $600 million compared to the same quarter last year when it totaled $1.18 billion.

Facebook's daily active users jumped to 699 million, a 27 percent year-over-year spike while monthly actives hit 1.15 billion in a 21 percent lift compared to the same quarter last year.

Lastly, the company reported that Instagram now has more than 100 million users.

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