FROM ZERO TO 13 BILLION

Facebook has created a $13 billion mobile-ad business in four years

Obsession
Mobile Web
Obsession
Mobile Web

The story of Facebook right now is its mobile dominance—all the more interesting because four years ago investors were wary of the company for its seeming lack of a mobile strategy.

In that period of time, Facebook has created a $13 billion mobile-advertising business. That’s how much revenue it generated from mobile ads in 2015. For the fourth quarter, Facebook reaped 80% of its ad revenue from smartphones and tablets.

Facebook passed a new milestone in the final quarter of the year, with 90.6% of all its active users accessing the social network from a mobile device. Of its 1.59 billion monthly active users, 1.44 billion come from mobile, a 21% rise year-over-year. As of the Dec. 31, it made $4.83 in ad revenue per mobile user.

The company is also closing in on another mark: 1 billion users who check its flagship app everyday. At the rate it’s growing, about 25% each quarter year-over-year, it could pass the threshold as soon as this quarter. It reported 934 million daily active mobile users at the close of 2015.

Overall, Facebook reported $1.56 billion in profit on $5.84 billion in revenue, up 52% year over year. In 2015, it made $3.69 billion in net income on $17.93 billion in revenue.

Investors are loving the results, with shares up nearly 9% in after hours trading.

home our picks popular latest obsessions search