Although Facebook's desktop platform is no longer providing the revenue stream that some platform investors came to expect, and even though the whole shebang is a very thinly veiled 21st century Pravda, reports are in that speculators in the jewel of the USG's social media crown have driven the firm's stock price to new heights on the back of "mobile" advertising revenues.
As smartphones, tablets, and the in-between "phablets"1 come to replace laptops for the majority of the world's "connected" denizens, advertisers are following suit by shifting their marketing expenditures to the non-desktop platform known as "mobile".2 This trend, combined with the emerging market-wide recognition of the ineffectiveness of search engine optimisation, as well as the increasing popularity of desktop browser ad-blocking plug-ins, have conspired to force the hollow remains of American "industry" towards the only non-television-based advertising platform remaining. Given that there's still too much money sloshing around in the fiat world – and to the extent that it needs a home, any home at all, and to the extent that the laundry has to go somewhere – how could marketers not choose Facebook, seeing as it's the most obvious and the most unassailable3 choice ?
So it is that Facebook's total revenue rose from USD $ 3.85 billion in Q4 2014 to USD $ 5.84 billion in Q4 2015 and that the portion of advertising revenue generated from the "mobile" side of their business grew from 69% to 80% of total revenue in that period, translating to a "mobile-only" revenue increase of 74% year-over-year.
Facebook inc. now claims 1.59 billion monthly active users, which, when measured against a market capitalisation of THREE HUNDRED BILLION UNITED STATES DOLLARS,4 yields an expected lifetime economic value of each user at a lofty USD $ 188.70, or approximately four orders of magnitude higher than experts suggest. Sorry for your loss.
Think iPhone 6S Plus, Samsung Note, etcetera. ↩
This is a strange label when you consider that all personal computers are in point of fact "mobile" and that the only difference between a phone and a desktop computer is relative ease and relative convenience of transportation. This is not a trivial matter, but nor is it uniformly true, and therefore nor is it absolutely true, that some internet-connected devices are "mobile" and others aren't. They all are, but perhaps that's too much nuance for the folks wearing skinny jeans, sipping "field-roasted" "bespoken" coffee, and blowing vapes in the world's various "agencies" dedicated to such market segmentation. ↩
When you're calling the ad spending shots for a large firm, the kind that spend tens and even hundreds of million on advertising every year, unassailable "accountability" is the name of the game. ↩
Given a share price of $105.90 per share, which happens to be the after-hours trading figure at this time. ↩