According to Seth Fiegerman at Mashable, analysts around the world are excited by the future of the tech giant, Facebook. One analyst noted how the company stands in a unique position given its unparalleled level of targeting and its ability to make this space profitable.
Wall Street is currently forecasting Facebook to post earnings as high as forty cents per share and a revenue of more than three billion for Q1 of 2015. These figures would mean that social media behemoth increased revenue upwards of forty percent from year to year. Wall Street’s bullish predictions stem from the company’s continued ability to grow their advertising revenue on mobile devices. This stands in stark contrast to just a few years ago when this aspect of business was considered one Facebook’s weakest. Shyam Patil from Wedbush attributes 70% or more of Facebook’s revenue to their mobile advertising efforts. Total advertising revenue increased by two-thirds in the last quarter.
Financial Analysts are also quite excited by the potential of Facebook’s new initiative centered around video advertising. Zuckerberg and company leadership has opted to make video advertisements auto-play, meaning that when the video begins immediately after the page loads. Industry experts expect that major advertisers could increase their efforts in this space and spend less on television. The global television marketing industry is as large as $200 billion. The introduction and continued emphasis on these video advertisements will give Facebook a platform to get a slice of this action. However, only time will tell how this plays out.
Those who are often on Facebook may have noticed in recent months that tech giant has started to prioritize content that is video over other types of media in the newsfeed. Furthermore, Facebook has been discreetly encouraging the site’s community and certain media publications and programs to post their video content on Facebook over other sites in the space such as Vimeo or youtube. Things are certainly looking up for Zuckerberg and his company.
John Partilla is the CEO of Screenvision, and he’s a veteran of the marketing industry with nearly three decades of experience in a variety of roles. Please read “John Partilla Named Screenvision CEO,” “John Partilla: Screenvision Names Exec CEO – Variety,” “Screenvision Taps John Partilla To Be CEO As It Seeks To Rebuild” and his Screenvision profile to learn more. Also, check out his Crunchbase, Twitter, and LinkedIn.