Nov 09, 2015 06:00 AM EST

Facebook Ads Boost Biggest Social Network's Sales


Facebook ads bolstered Q3 earnings of the world's biggest social network.

Facebook ads helped registered the company's Q3 burgeoning 41 percent revenues year-over-year with 50 percent coming from every United States user as compared to last year.

Business Insider revealed Facebook's sales mostly came from Europe and North America. Although 65 percent of the company's monthly active users are from the Asia-Pacific region and the rest of the globe, only about $ 1.1 billion or 25 percent were gained from those locations. The reason for that was the fact that the average Facebook ad revenue for every user in those areas was still minute, in comparison to that in the United States.

In addition, Facebook ad revenue were slowly climbing to the top. From last year's 17.6 percent in Asia Pacific and 10.9 percent throughout the rest of the world. As such, the largest social media network is looking for more tactics to make sure its ads become more valuable in other parts of the earth.

Last week, a new kind of Facebook ad format was launched to emerging markets like Africa and India, where consumers often lack the bandwidth to view real videos. The social media app said that the video-like experience, "Slideshow" ads would prove to draw more attention for Facebook users.

According to Bloomberg, Facebook Inc. managed to overcome third quarter revenue estimates after the company exhausted efforts for it mobile advertising.

Facebook's Q3 sales were $4.5 billion versus the average analyst valuation of $4.5 billion. In a statement released by the Menlo Park, California-based firm, there were 1.01 billion visitors daily sharing status updates and checking on other people. Monthly users rose to 1.55 billion or 14 percent.

Facebook putting more ads in the face of this huge and growing consumer has paid off as profit, not including some items was 57 cents a share compared with analysts' 52 cents prediction. Net income leaped from $806 million to $896 million.

Josh Olson, Edward Jones & Co. analyst said, “Their core mobile-advertising business is still very strong and has a lot of runway.”

Facebook now employs 12, 000 in its workforce after an additional 1,000 jobs last quarter.

Furthermore, Facebook's chief operating officer, Sheryl Sandberg, is targeting for the social network to have a vast impact in next year's United States elections — each member of Congress has a Facebook account.

Facebook CEO Mark Zuckerberg said, “We had a good quarter and got a lot done. We’re focused on innovating and investing for the long term to serve our community and connect the entire world.”

Some business observers see more potential for his company's shares to rise. Aside from Facebook ads, some of its assets such as WhatsApp, a mobile messaging service bought by the social media giant in 2014 as well as the Oculus VR, a virtual reality hardware firm has yet to generate income, as per SFGate.

Meanwhile, if you're interested in setting up your Facebook ads, check out Entrepreneur for tips.

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