Facebook’s Mobile Revenue Climbs to $2.5 Billion as Ad Prices Soar
Facebook continues to do what few digital publishers can pull off: Over each of the last five quarters, the social network has been able to boost revenue even as it sells fewer ads.
The ability to raise prices has rocketed Facebook’s overall revenue to $3.85 billion in the most recent quarter. In the final three months of 2014, Facebook served 65% fewer ads than a year earlier, but the average cost of those ads to advertisers was 335% higher.
While Google, Yahoo and many digital media companies are trying to squeeze ads in to more places to make money, Facebook has gone the other way. Despite a seemingly endless amount of inventory, it is trying to create a sense of scarcity around the ads it serves.
