Is Facebook Becoming the Apple of Digital Ad Sales?
Facebook has become the Apple of digital ad sales. The social network is able to push its ubiquitous product to increasingly higher prices seemingly without any pushback from its customers.
In the first quarter of 2015, Facebook got its advertising customers to pay 285% more money per ad than they did a year ago as the social network served 62% fewer ads year-over-year.
As a result Facebook has been able to increase the amount of money it makes per user year-over-year even as it adds users. Facebook ended the first quarter with 1.44 billion people who check it every month, 936 million who check it every day and 798 million who check it every day on mobile.
The reason Facebook is able to get advertisers to pay more money for fewer ads is mobile. Facebook's user base and main revenue stream are becoming more and more mobile, a trend that dates back to the company's mobile-first pivot in 2012. In the first quarter of 2015, 73% of Facebook's total ad revenue -- or $2.42 billion -- came from mobile.