The past month has not been very good for Facebook in the world of public relations and publicity. However, the company is still raking in cash at a very high rate. The social media giant recently released their earnings report for the third quarter of 2019. It was much better than most industry experts thought it would be. The solid quarterly earnings report resulted in Facebook’s stock going up by six percent. There was a massive increase in revenue generated by mobile ads. The company is depending on ads shown on mobile devices for the vast majority of their overall ad revenue.
One of the most profitable creations that Facebook has come up with is making ads shoppable on Instagram. Facebook also owns Instagram and has transformed the site into a huge money maker. Companies can now post ads on Instagram that can be clicked on by users. The ad will take the user directly to a site that will allow the person to buy the item right there. One of the problems that companies had in the past when they placed ads on Instagram was the fact that users had to leave the site to buy the item. This cost these companies many sales because some people don’t want to take that extra step of leaving Facebook to buy the item on a completely different site. Making the ads shoppable is a game-changer that is generating a fortune in revenue for Facebook.
Facebook CEO Mark Zuckerberg had an earnings call where he discussed how his company did in the third quarter. He said that he was pleased with the amount of money that Facebook was able to generate. He also said that the social network gained many more users during the third quarter. This is despite the fact that the media has hammered the company for many data breaches and their troubled cryptocurrency experiment known as Libra.
It is not hard to see why the ad business is so good for both Instagram and Facebook. Both platforms give advertisers the ability to target very specific demographics. This ensures that their ads are actually being seen by the people who will most likely be interested in buying their products. There is also the fact that both platforms are used by billions of people. This means that advertisers are getting a lot of bang for their buck. They are reaching a huge audience.
