Facebook beats Q2 estimates, maximum revenue generated through mobile advertising

Social networking giant Facebook announced its second quarter earnings on July 29. As per the results, the company reported a net income of $719 million, according to reports.

In the second quarter, Facebook posted $4.04 billion in revenue and $0.50 earnings per share, reports Tech Crunch. Currently, Facebook has 1.49 billion monthly users, up 3.47 percent quarter over quarter. Analysts had estimated $3.99 billion in revenue with 47 cents EPS. Facebook reported a net income of $719 million, reports ZDNet.

Revenues generated through mobile advertising accounted for nearly 76 percent of all ad revenues in second quarter of 2015, in comparison to 62 percent witnessed in Q2 2014. The social network is heading towards having one billion active daily users across all its platforms. As on June 30, the daily active tally was recorded at 968 million, up 17 percent year-over-year, while the daily mobile users were around 968 million, up 17 percent year-over-year.

According to a Business Insider report, Facebook tweaked the method of charging its advertisers. It allowed its advertisers to pay only when any user clicks on the link to their brand’s web interface or app. Recently, Facebook had announced that it will share 55 per cent of its ad revenue with video content creators.

YouTube also offers the same revenue split to lure content creators. It offers 55 percent to its video creators and the remaining 45 percent stays with the platform, report Re/Code. But Facebook pitches that advertisers can find more viewers for their videos as the social media will directly show videos to the audience without letting people hunt for it.

“A lot of [our partners] have said this will be a big motivation to start publishing a lot more video content to Facebook,” the Re/Code report quoted Dan Rose, Facebook’s VP of partnerships, as saying. Facebook said that in the last quarter, users viewed its videos more than 4 billion times per day, reports Business Insider.

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