Mobile Ads Fuel a Jump in Profit at Facebook

On Wednesday, Facebook reported its strong third quarter profit based on the success of mobile ad sales. It has a profit of $425 million along with a 60% increase in revenue this quarter comparing to the $59 million profit lost for the same period last year. Additionally, mobile ad sales covered up almost half of Facebook’s advertising revenue.

Facebook could generate such a significant profit increase from migrating users to mobile devices because of its strong brand positioning. With a unique value proposition, Facebook opened up a new branch for mobile device users before other social programs such as Twitter and Skype. The first movement advantage led Facebook to implant applications on mobile devices without failures. As a result, Facebook would have a dominant market share in mobile application and would block out other firm entries.

The increase in profit margin resulting from mobile ad sales reflects that Facebook’s recovery from its IPO failure is coming to an end, and the company is ready to move onto the next stage. Now, with an ambition of bringing the next five billion people in the world online, Facebook shows its way to rise again as the number one social network in the world.