Mobile advertising now accounts for just short of half of Facebook's revenues, the social network company announced Wednesday sending shares soaring in after hours trading.
Releasing its latest quarterly results, Facebook said mobile advertising revenue represented approximately 49% of $1.8bn in ad revenue the company made in the third quarter of 2013.
Fears that Facebook was facing difficulties adapting to the rapidly growing mobile market contributed to its rocky share sale last year. It took Facebook close to a year to surpass the $38 price its shares initially sold for. Facebook's shares soared close to 10% to $53.88 in after-hours trading as investors digested the mobile figures.
Facebook is expected to account for a 15.8% share of worldwide mobile ad spending in 2013, up from a 5.35% share last year, according to analyst eMarketer. Google is expected to grab 53.17% of the worldwide mobile ad market this year, up slightly over a 52.36% share in 2012.
Mobile advertising is the fastest growing advertising category. The overall mobile ad market worldwide is expected to grow 89% to $16.65bn in 2013, eMarketer estimates, up from just $8.8bn in 2012.
Overall, Facebook's revenues were over $2bn for the quarter, up from $1.26bn for the same period last year. Net income was $425m, compared to a loss of $59m last year.
Mark Zuckerberg, Facebook founder and chief executive, said: "The strong results we achieved this quarter show that we're prepared for the next phase of our company, as we work to bring the next five billion people online and into the knowledge economy."
The company said there was an average of 728m daily active users (DAUs) on Facebook in September 2013, an increase of 25% year-over-year. The number of monthly active users was 1.19bn as of September 30, 2013, an increase of 18% year-over-year.
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