Social network Facebook has revealed a 38% rise in revenues year-on-year in the last quarter to reach a mammoth $1.46bn (£938bn) despite growing numbers of users leaving the site.
Revenues were driven by mobile advertising, a key tenet a Facebook's appeal and usability. According to Marketing Week:
Revenue from advertising hit $1.25bn (£803m) during the three months to March 31, representing a 43 per cent increase from the same period in 2012, with revenues from mobile ad units accounting for 30 per cent. However, profit margin fell to 26 per cent during the period, down from 36 per cent 12 months earlier.
The news comes as speculation grows over the supposed decline in popularity in the world's largest social network. Data from Nielsen and Socialbakers has suggested that Facebook has lost 10 million American users and has experienced no growth in monthly visitors in the UK over the last 12 months - but whether due to market saturation or a disinterest with the service, the number of unique visitors to Facebook has dropped from 153m in March 2012 to 142m in March 2013.
Mark Zuckerberg, Facebook CEO, championed Facebook's mobile-first ideology and did not comment on the rumoured loss of users.“Overall, there are three main parts of our strategy. Build the best mobile product, build a platform with new services that leverage the social graph, and build a strong monetisation engine,” he said.
“Every major brand, company or service wants to build apps as a storefront or interface for their customers and each of these companies wants to reach their customers to encourage them to install their [mobile] apps,” he said.
Market researchers at eMarketer have predicted Facebook’s earnings from display advertising will reach £279m in the UK in 2013, 18.6 % of the total display market.
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