ARCHIVES: This is legacy content from before Marketing Dive acquired Mobile Marketer in early 2017. Some information, such as publication dates, may not have migrated over. Check out the new Marketing Dive site for the latest marketing news.

Facebook?s evolving mobile ad units contribute to 52pc revenue boost

Facebook continues to entice advertisers of all shapes and sizes by constantly updating its ad units with new features and placing a bigger spotlight on mobile video, including Facebook Live and 360 video, a strategy that helped the social network see a 52 percent increase in revenue year-over-year.

During its earnings call yesterday, Facebook revealed that mobile advertising revenue accounted for approximately 82 percent of total advertising revenue for the first quarter of 2016, a 9 percent uptick from 2015?s first quarter. The social network is focused on equipping smaller and mid-size businesses with enhanced targeting tools and a plethora of ad format choices, such as immersive Canvas units and video-streaming options, cementing its status as a leader in native mobile advertising.

?One of the biggest trends we?ve seen so far in 2016 is native,? said Anthony Alvernes, senior mobile strategist at IgnitionOne. ?Native display has been taking off overall, especially within Facebook?s mobile app.

?This is from both the advertising standpoint as well as the developmental framework of the UI.?

Mobile ad momentum
Mobile ad revenue consisted of 82 percent of Facebook?s total ad revenue for 2016?s first quarter, highlighting the massive shift of ad spend heading toward new platforms. Overall revenue jumped by 52 percent year-over-year to $5.382 billion, exceeding expectations.

The social network?s mobile daily active users clocked in at 989 million for the month of March, a 24 percent increase year-over-year that also shows consumers? desire to engage with snackable content on their personal devices. Mobile ad revenue reached $4.2 billion, per Facebook?s chief operating officer Sheryl Sandberg, up 72 percent year-over-year.

?Consumers have shifted to mobile, and businesses know they need to catch up,? Ms. Sandberg said during the earnings call.

This massive spike was helped partly by Facebook?s commitment to introducing constantly-evolving ad units that provide a more native ? and less disruptive ? viewing experience.

Consumers are developing and creating nearly three times more video on Facebook than they were one year ago, underscoring a lucrative opportunity for brands to connect with users through this medium.

Ms. Sandberg named Nestlé as an example of a marketer that optimally tested consumer responses to two types of advertisements rolled out on mobile. The brand introduced one unit showcasing a commercial originally created for television, while another featured that same content edited for the mobile feed with a new opening and text overlays.

The mobile-optimized version promoted stronger brand awareness, meaning that brands cannot repurpose one type of ad across several digital platforms.

Additionally, Facebook continues making strides in mobile video. It rolled out auto captions for video ads and shined a spotlight on its Canvas ad units, which combine video, images and strong calls-to-action. While revenue for the Canvas ads was not disclosed, Facebook claims it is pleased with the results.

The network?s number of mobile users grows even higher. More than 1.5 billion individuals accessed Facebook from their mobile devices in March, up 21 percent from last year.

Looking to the future
Facebook?s CEO, Mark Zuckerberg, discussed the company?s longstanding dedication to helping consumers connect more easily to one another, regardless of their location. Facebook has recently introduced a slew of new tools and forward-facing initiatives that may be seen as controversial, but are meant to further the social network?s role in constant connectivity.

?We?re focused not on what Facebook is, but what it can be, on what it needs to be,? Mr. Zuckerberg said during the call.

For example, Facebook?s ongoing efforts in virtual and augmented reality may not pay off for years, per Mr. Zuckerberg, but will ideally help it connect the world through lifelike experiences.

Nevertheless, Facebook?s user outreach is constantly expanding, as evidenced by consumers spending more than 50 minutes per day using Messenger, the Facebook app and Instagram. Usage of WhatsApp, one of Facebook?s newest acquisitions, is not included in this figure.

Facebook now owns two of the top messaging apps, with 900 million people using Messenger each month. The company will continue to perfect its chatbot offerings.

Staples, Fandango, 1800Flowers and CNN are among the first brands to reach out directly to Facebook Messenger?s large audience as part of a chatbot push announced several weeks ago at an annual meeting Facebook holds for its developers (see story).

Instagram is also a lucrative marketing medium, which sees 200,000 businesses advertising on it each month.

Furthermore, Mr. Zuckerberg detailed Facebook?s ongoing efforts to innovate within the virtual reality and artificial intelligence realms. AI is helping Facebook filter spam and messaging, while the Moments photo app leverages facial recognition technology.

Facebook began shipping Oculus Rift, its VR headset, this past quarter. While VR is not expected to take off immediately ? as many of its early adopters are gamers and developers ? Mr. Zuckerberg believes that it will be the next major computing platform.

Finally, he posited that the world is in the beginning of a golden age in online video. The company is particularly proud of its 360 video feature, which was recently tapped by HBO?s Game of Thrones.

The series built fan excitement ahead of its season six premiere by inviting Facebook users to explore the fictional world of Westeros by using their finger to swivel around a 360-degree video of the program?s opening credits (see story).

?Facebook is remaining focused on being able to stay ahead of competition in offering new ways users can engage in the moment via mobile, whether it?s on their apps or on their phones,? IgnitionOne's Mr. Alvernes said.

?That being said, there is an overall challenge in mobile to find ways to do more with video, so it will be interesting to see how Facebook moves forward in building on engagement with mobile video and its monetization.?