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Facebook announce major financial gains for Q1

Facebook announce major financial gains for Q1

And it's thanks to mobile advertising...

Image: Ib Times
Image: Facebook

Facebook's push into mobile has helped major gains for the company in the first quarter of this year

As a social media giant, Facebook has announced that mobile ads made up 59% of its overall advertising revenue in the first quarter of 2014 – to put it in perspective, that's about $1.3 billion, and a substantial gain from this time last year.

It's a point that chairman and chief executive officer Mark Zuckerberg has hailed as the company's strongest growth rate in nearly three years on its earnings call.

Overall, it has led to a profit increase of 193% (to $642 million) – mobile has been an area of intense focus for Facebook, which recently agreed to buy mobile-messaging firm WhatsApp for $19 billion. 

"One recent powerful example of this is Sport Chek, Canada's largest sports retailer," Zukerberg said. "They recently decided to pull their paper circulars, which their company had relied on as its primary ad vehicle for 92 years, for two weeks, and replaced them completely with digital spend, a majority of which was on Facebook. During those two weeks, national in-store sales grew 12% year-over-year and in-store sales of the items they promoted on Facebook grew 23%."

And the company's mobile user base is continuing to grow.