The advertising world is changing, with an increasing amount of ads featured on social media, and less on television. Larger companies are spending more of their advertising dollars to target Facebook users, since consumers spend so much time on the site. An estimated 1/5 to 1/3 of time spent on mobile devices is spent on Facebook. The company not only captures 968 million daily views, but its users also spend an average of 46 minutes on Facebook owned apps. Mark Zuckerberg, CEO of Facebook, is taking advantage of the increased traffic, and is spending more money this year on marketing and R&D.
Analysts estimate that Facebook and Google combined will capture more than half of the world’s mobile-advertising market this year. Although Google has 35% market share, Facebook is rapidly catching up. Facebook is gaining from the loss of other companies that are not doing so well in the mobile advertising world. For example, Twitter’s shares lost 14% last week and Yelp’s shares plummeted a shocking 25%. Facebook is taking advantage of other company losses, and is starting to increase advertising on Facebook-owned websites. Instagram, a Facebook owned website, is expanding its ad capabilities this year, so that larger companies can reach a younger demographic.
Facebook is also growing fast for its age, and benefits from significant growth every quarter. Last quarter, Facebook reported a 39% increase in quarterly revenue, with 3/4 coming from advertising on mobile devices. Zuckerberg is determined to invest heavily in the company this year, with most of the money going to data centers, new hires, virtual reality, and even solar-powered drones. With Facebook gathering so many viewers on a daily basis, the opportunities for the company are endless.