Wednesday, October 24, 2012

Facebook Is Having the Best Day Ever!




New York Magazine reports that the social network's stock is way up today — more than 20 percent as of midday — putting Facebook on track to have its best ever day as a public company. The nominal reason for the gains is that yesterday's earnings report was better than analysts had expected, with a small loss attributable to all those stock options employees cashed in when their lock-ups ended.

But the gains are really about one thing: mobile advertising. Facebook made $153 million from selling advertisements for its mobile apps last quarter, a figure that represents 14 percent of all its advertising revenue. And while those ads will clog your timeline, they represent a sign that Facebook is coming close to solving its biggest problem.

Why is mobile advertising so important for Facebook? Because it's a no-brainer. Facebook has more mobile users than any other social network by a huge multiple (604 million at last count), but has been slow in advertising to those users.…….


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