Can These Efforts Make a Difference in FB’s Ad Revenue?

But Facebook knows that much of its growth, especially its mobile growth is coming from emerging markets where such an advertising strategy is not possible because such extensive knowledge of customers’ purchasing habits is unavailable. But the social network has implemented what might be the next best solution: giving users in 14 different countries access to “free or discounted data access” to Facebook Messenger, a plan aimed at ensuring that they spend more time on the social network and see more ads as a result.

These stocks are hitting our Profit Targets. Click here now to discover winning stocks!

Many of the approximately 18 mobile carriers who partnered with the company on the deal operate in emerging markets.

With this deal, Facebook not only acknowledged that its messaging platform is extremely popular — the social network’s blog update that announced the free or discounted data service also boasted that three out of four Facebook users send at least one message per month  — but the company also gave an indication of how greatly mobile is affecting its business.

The most recent figures, from a filing made with the U.S. Securities and Exchange Commission, show that 102 million users accessed Facebook solely through mobile devices in June. These numbers are not a sign that members are increasingly abandoning the desktop platform, but that more and more of Facebook’s growth is coming from what analysts call mobile-first areas, like India and Indonesia. However, it is also true that many users in developed countries are spending more time on the company’s mobile platform as well, hence the revenue problems that have been manifested in all of the earnings reports released since the company went public.

Don’t Miss: Which Companies Rule the Internet?

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Premium Newsletters

Stock Investor Cheat Sheet

Stock Investor Cheat Sheet®

The ultimate Cheat Sheet for finding winning stock picks.
Learn More

Gold & Silver Newsletter

Gold & Silver

Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
Learn More

Commodities Premium Newsletter

Commodities Premium

There's always a bull market in some sector! Find the best opportunities in commodities.
Learn more

ETF Investing

ETF Investing

At last, a trading system that buys the right ETFs at the right time, time after time!
Learn more

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business