Last May, Facebook's record-breaking initial public offering shocked the world. However, those halcyon days were soon long behind the popular social media website. According to Forbes Magazine, one of the reasons for Facebook's declining shares was its lackluster mobile marketing efforts. The article stated that millions of users in 2012 accessed Facebook using their smartphones, which meant that they saw almost no ads.
Yet recently, Facebook stock has been making a major comeback. Thanks to smarter advertising, Mark Zuckerberg's company is now around $30 a share, an amount that represents double what it was last May. Mobile ad profits account for almost 25 percent of overall ad sales.
"Two quarters ago we didn't really have any mobile revenue. We're just getting started," Facebook's CFO, David Ebersman, told the Wall Street Journal during a January interview.
Advertising agencies have also noticed a change in Facebook's mobile ad strategy over the past year. "There has definitely been a change in momentum on the positive side," said Colin Kinsella, CEO of international ad firm Digitas North America.
Ads on Facebook are now incorporated into a user's news feed. This ensures that the banners look and feel more natural than when they are posted on the right side of a person's computer screen.
In 2013, one of the challenges that Facebook will need to address is whether it has been overzealous when it comes to profit-making efforts. For now, though, only one thing is certain – the company has changed its mobile ad strategy for the better.
If you'd like to know how you can increase your company's profits, then consider contacting a local online marketing firm that specializes in mobile ads and optimizing websites for mobile. These companies can also advise you about how to grow your customer base by organizing pay-per-click campaigns.