Zak Stambor says, “Facebook’s revenue in the second quarter of the year surged 59% from the same period a year ago thanks largely to ad revenue from the network’s mobile advertising.

The social network reported today that 84% of its Q2 advertising revenue stems from mobile ads, which appear on Facebook, Instagram and across Audience Network. Given that advertising makes up nearly 97% of the company’s revenue, the roughly $5.241 billion that retailers and other marketers spent on mobile advertising during the quarter made up about 81% of the company’s overall revenue. That’s a significant increase from Q2 2015, when mobile ads accounted for 72% of the company’s overall revenue.

Facebook attributes its advertising success to ad targeting. During its conference call with analysts it pointed to Lighting Etc., a third-generation family-owned retailer that used Facebook and Instagram ads to drive in-store sales. The retailer targeted 25-45-year-old homeowners interested in interior design, who live within 35 miles of their Fort Worth, Texas showroom. That specific targeting enabled it to reach more than 300,000 consumers who were likely to be interested in its products. The retailer says its revenue is up 40% this year, which it attributes in part to its ads on Facebook and Instagram”.

Mobile advertising accounts for 84% of Facebook’s ad revenue

Internet Retailer

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