Facebook (FB) Mobile Ad Revenue Likely To Reach $33bn in 2017

Facebook Inc (NASDAQ:FB) Mark Zuckerberg

Facebook Inc is expected to see a growth in its ad revenues and user base this year and in 2017. According to a detailed report about the social networking company’s mobile internet ad revenues, eMarketer estimates that worldwide ad revenues at Facebook will reach nearly $26 billion this year, up from $17.08 billion in 2015. The research firm expects the company’s ad revenues to further grow to $33.76 billion in 2017.

Mobile Internet Ad Revenues To Grow Over 60% This Year

eMarketer said that a large share of the company’s revenues is coming each year from outside the U.S. According to the firm, mobile is accounting for more of the social network’s ad revenues as well.

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In 2016, eMarketer expects that Facebook will make $21.98 billion in mobile internet ad revenues from around the world, up 66.6% over 2015. Double-digit growth will continue through at least 2018, when the company will earn $37.98 billion in net mobile internet ad revenues.

“Facebook is still going pedal to the metal when it comes to building out its products and services,” eMarketer principal analyst Debra Aho Williamson said. “Its flagship service is still growing in every metric that we track, and its other services, such as Instagram, WhatsApp and Messenger, are also performing well. Oculus has had some challenges gaining traction, but these are very early days for virtual reality in general.”

According to eMarketer, the company’s ad products are proving popular and effective for marketers.

“Facebook had a hiccup in September when news broke that it was overstating to marketers and advertisers the amount of time people spent watching video on its platform,” said Williamson. “Though eMarketer doesn’t believe the revelation will cause brands to pull back their Facebook spending, we expect that in the future there will be a push for more rigorous third-party measurement of ad performance on properties like Facebook.”

Facebook Properties Predicted To Grow in Popularity

Facebook properties include Instagram, WhatsApp and Messenger. The research firm expects that the company’s properties will continue to grow in popularity.

For example, according to eMarketer, Facebook messenger will reach more than two in five US mobile phone users by the end of this year, and more than half of that audience by 2020.

“Facebook is clearly getting closer to monetizing Messenger and WhatsApp,” Williamson noted. “In August it made changes to WhatsApp’s privacy policy in preparation for allowing consumers to communicate more easily with businesses. And Messenger in September added buy buttons and native payments to the app.”

Facebook Inc is trying to get a foothold in the e-commerce sector in a bid to steal market share from Amazon.com, which dominates the e-commerce scene in providing a B2C platform for businesses to sell directly to consumers.

The social networking company has added a new food-delivery option to its social networking website to make online shopping easy for its more than 1.5 billion users. The new option is designed to let users buy movie tickets, order food delivery and book salon appointments straight from the app.

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