For the past few months, it has looked as if Facebook found itself in a tight spot, fighting against the recent concern over its decline in users and the speculation that it would soon meet the same fate as MySpace.
But rather than accept the situation lying down, Facebook’s fourth quarter earnings have shown us that Facebook is still a force to be reckoned with.
As the Wall Street Journal reports, Facebook posted a 63% increase in revenue and an eightfold increase in profit for the fourth quarter.
In an interview, Chief Operating Officer Sheryl Sandberg said that according to recent data, Facebook ads do actually work, noting that Coca-Cola’s Facebook ads proved to be more efficient than its TV ads.
And that’s not all; Facebook also reported that mobile advertising accounted for 53% of revenue in the fourth quarter, a jump up from the 23% revenue it reported a year earlier. EMarketer, a market researcher, noted that Facebook took 18% of the $16.7 billion global mobile-advertising market last year, second only to Google’s 53%.
Not in the clear just yet
While Facebook’s profits are high, they still haven’t addressed the concern over whether they will be able to attract new users, especially teens who are moving towards other social media services such as Snapchat or Whatsapp.
In turn, this puts businesses who use Facebook for recruiting, marketing, and more, in a bit of a good news/bad news situation:
- The good news is that the social media giant’s mobile advertising revenue shows promise that it at least has a chance of successfully going mobile. Its new release of Paper hints at a lot of potential for success in that regard.
- The bad news is that Facebook hasn’t really shown what it has up its sleeves to guarantee that it will continue to remain popular for years to come, which doesn’t really help businesses gauge where they should stand with the social media giant.
Keeping your options open will help to better protect you from losing your ability to recruit efficiently and effectively, so if and when things take a turn for the worst, you won’t end up going down with the ship.