Facebook’s mobile advertising segment expanded by over 50% during the second quarter, said officials from the company in their earnings report on Wednesday, as the giant social network established itself even more as the venue of choice for the growing number of online advertisers.
Facebook, which has four of the mobile services that are the most popular in the world, saw its shares increase over 4% in Wednesday’s trading afterhours. Through the close of trading on Wednesday, Facebook’s stock has climbed close to 44% in 2017.
Facebook has over 2 billion active monthly users and has been placing more ads into its news feed while adding more to Instagram its app for photo sharing, which has over 700 million active users.
With money flowing from those services, CEO Mark Zuckerberg said Facebook was turning its attention to the monetizing of its pair of messaging services – WhatsApp and Messenger, which have over 1 billion active users apiece.
The company is also accelerating its push into the video market, an effort that is aimed at taking away advertising dollars from the conventional television industry while increasing time that users spend on its Facebook site.
Within a few weeks, Facebook should start its video service that includes scripted shows, which is a big change for a company built upon content that is user-generated.
Zuckerberg says that video will be a big driver of the business for Facebook over the next two or three years.
Facebook, having those possibilities for the future, said that its total revenue increased by 44.8% to end the second quarter at $9.32 billion. That exceeded analyst averages of $9.20 billion.
Growth was much steeper in its mobile advertising, which reached close to $8 billion.
Revenue from mobile advertising represented 87% of the total revenue from advertising for the company that was $91.6 billion for the most recent quarter, over 84% higher than the same period one year ago.
Facebook and Google parent company Alphabet have half of the worldwide market for online advertising, and the revenue growth for Facebook during the quarter outpaced that of Alphabet.
On Monday, Alphabet posted an increase of 21% in its revenue for the quarter, although it began the quarter with a larger base than did Facebook.
Facebook as of yet has not said the amount of revenue that is attributable to Instagram, although the app for photo sharing has become more of a focus for the business.