“With Instagram, you could see it adding maybe $2 billion to revenues when you get into 2017”, said Robert S. Peck, an Internet analyst at SunTrust Robinson Humphrey. As reported, Facebook’s advertising revenue in the quarter grew 45.4% to $4.3 billion and mobile advertising accounted for 78% of its total. This further cementing Facebook’s firm footing as a mobile platform beyond everything else.
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The company revealed the staggering figure during its Q3 earnings report, saying that it saw an average of 1.01 billion users on the site throughout September. Which means, yes, 1 billion people now use its core service.
As on September 2015, Facebook had 1.55 billion active users on a monthly basis which is a fourteen percent increase compared to a one year earlier.
The number of monthly active users grew 14% year-on-year to 1.55 billion.
Excluding certain expenses, Facebook reported earning per share of 57 cents, up 33% from 43 cents a year ago.
“We just announced our quarterly earnings and gave an update on our community’s progress to connect the world”, Zuckerberg said in a post.
“The biggest surprise coming out of the quarter was the ability to accelerate advertising revenue growth”, said analyst James Cakmak of Monness, Crespi, Hardt & Co.
Chief executive Mark Zuckerberg said the company was “focused on innovating and investing for the long term”. The app is similar to an earlier news feature the company launched called Instant Articles, which pushed content onto users’ news feeds.
There are 1.5 billion of us now on Facebook, and it’s making a lot of money advertising to us.
There are more than 8 billion video views on Facebook each day, double the amount back in April.
Investors responded favorably to the news as share value is up almost four percent in after-hours trading, closing at an all-time high.
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$9.86 in average advertising revenue per user in the US and Canada, up 48.5% from about $6.64 a year ago.
