Video ads on Facebook cost about $4 per 1,000 views during the first quarter, up from $3.44 in 2015 and higher than the $3.14 average across Facebook, according to marketing-technology company Kenshoo. Zuckerberg said users were spending more than 50 minutes per day on Facebook, Instagram and Messenger, a huge amount of time given the millions of apps available to users.
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“We had a great start to the year…We are focused on our 10 year roadmap to give everyone in the world the power to share anything they want with anyone”, said Mark Zuckerberg, Facebook founder and CEO.
Reporting its first quarter results today (April 27), the company beat Wall Street’s expectations for revenue and earnings. It also made $1.51 billion in net income during Q1, a massive spike from the $512 million it made during the year-ago quarter.
More than 1.5 billion people accessed Facebook from mobile devices in March, which is up 21% from past year.
Most of Facebook’s revenue comes from North America and Europe with only about 24% ($1.3 billion) coming from Asia-Pacific and the rest of the world.
The plan must be approved by Facebook’s shareholders at a meeting on June 20, but since Zuckerberg controls the company, its success is virtually certain.
Facebook Inc. reported a 52% jump in first-quarter revenue, as the social network continues to gain traction among the advertisers.
Mobile ads, which command a higher price than those that appear on desktop computers, accounted for around 80 percent of total ad revenue. Once the split is initiated, there will be 5.7 billion new Facebook shares on the market, yet those will confer no voting rights save their proportional influence on proxy proposals.
The figures sent Facebook shares soaring.
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The new class of shares should allow Mark Zuckerberg to give away his fortune earlier than planned and still allow him to remian in control of Facebook. The company’s successful quarter seems to have been on the back of its ever-expanding user base. The company said the move would “encourage Mr Zuckerberg to remain in an active leadership role at Facebook”. News noted that while also enticing advertisers to new products like live video, the social networking giant boosted sales on existing services. Analysts expected $5.25 billion in revenue and 62 cents EPS, which the social network handily exceeded.
