Facebook: Leading the Video Marathon!

Posted on Feb 05, 2015
By Gaurav Aidasani

Now the title of this blog has a lot to say. Let's start with this- Facebook has taken a giant leap in the mobile sales sector. Mobile ad sales now account for 69% of Facebook's advertising business.
During the 4th quarter of 2014, Facebook achieved 3.6 billion dollars in total ad sales. This was 53% higher than the previous year. The California based technology giant availed great benefits from holiday marketers. The latter were finding ways to increase retail revenues with the help of social advertisements.

How growing global user base benefited Facebook?
The booming sales observed through Facebook's mobile ad campaigns were favored by its rising global user base. Facebook now has around 1.4 billion active users monthly. This is a 13% hike year over year.
In terms of total revenues in 2014, Facebook received $12.5 billion. This is 58% increase than previous year.

The power of videos, you cannot ignore!
Facebook's COO, Sheryl Sandberg, once said, Video is one such format which marketers have been using for building emotional connection with brands.
Facebook is also of the view that videos have greater engaging capability. This is supported by Facebook's claim of 3 billion video views on Facebook daily.

Chasing the digital video ad dollars
Facebook is now chasing the digital video ad dollars similar to rivals Google and Twitter. All platforms are now showing their unique skills in video capabilities to attract viewers. In the past year, Facebook came up with autoplay mechanism for brands as well as users.

Get ready for the video explosion era!
It won't be wrong if we say that the world is experiencing a video explosion era. The credit for this explosion in video advertising goes to users who relentlessly post numerous videos.
It is a fact that sans user interest, ads would just appear as incongruous in the News Feed.

Who's leading the digital ad industry?
Google is the leader in the digital ad industry. Facebook is the next player with its quarterly numbers showing an impressive increase.
As per eMarketer, Facebook will account for 10% of the entire digital ad sales volume this year.

An interesting fact:
As per the CEO of Socialbakers, Facebook has delivered impressive digital ad sales performance. Facebook achieved this without heavily promoting ads on Instagram whose large 300 million user base cannot be ignored.

Rezab, CEO of Socialbakers said, Facebook made $1 billion of revenue 2 years ago. It now makes $4 billion which is impressive.

Below is a list of key numbers reminding Facebook's 4thquarter and full-year earnings:
1. Out of 69% of its ad sales, Facebook's mobile revenue was $2.5 billion in the past quarter. Mobile thus accounted for 66% of Facebook's ad sales during 2014 Q3.
2. Facebook's mobile app is used by 745 million users daily. This is 34.5% increase YOY.
3. Facebook's messenger app is used by 526 million users monthly.
4. Facebook's profits in the past year hit around $3 billion which is two times the preceding year's profits.