Media

Here’s Why Wall Street Loves Facebook Again

Published on August 28, 2013
by Peter Kafka

Why did Facebook climb back past its 2012 IPO price this summer, and why has the stock stayed up there?

Easy. Because when Facebook announced its Q2 earnings in July, it made a strong case that it had figured out how to make money on mobile ads — which had previously looked like they might sink the company.

And here’s what that argument looks like in chart form, via new numbers from eMarketer. The research company figures that Facebook is now on pace to control 16 percent of the mobile ad market this year. That’s up from 5.35 percent last year, and from a goose egg the previous year.

emarketer facebook mobile

Interesting to note that Facebook’s growth hasn’t come at Google’s expense — hard to displace those search ad dollars, and Google has recently started making money from YouTube mobile ads, too — or any of the other biggish mobile players, like Twitter or Pandora.

More interesting ad projections here.

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