How Facebook Capitalized on Shift to Mobile

Facebook’s mobile MAUs constitute 91.5% of total MAUs

Facebook (FB) continues to capitalize on the shift to mobile, increasing the number of marketers using ad products, and making ads more relevant and effective through expanded capabilities of tools for marketers.

Facebook’s mobile monthly active users (or MAUs) constitute 91.5% of total MAUs, which stood at 1.7 billion in 1Q16. The results indicate the significant shift of consumers towards mobile devices, which is influencing marketers to catch up with the trend. Facebook remains well ahead of Twitter (TWTR) and LinkedIn (LNKD) in terms of mobile MAUs.

How Facebook Capitalized on Shift to Mobile

Facebook stated that one of the key drivers of the consumer shift to mobile is video. Online videos have become an important media for brand promotion. According to Facebook “people are sharing and creating nearly 3X more video on Facebook than they were a year ago and, as of February, the time people spend watching videos on Instagram increased by more than 40% over the past 6 months.”

The company continues to invest in building new features such as live video streaming and caption-enabled videos. The company is in its testing phase to bring “suggested videos” similar to Google’s (GOOG) YouTube, which provides users with an array of videos according to their interests. In fact, the company is planning to provide dedicated space for videos on Facebook, which will segregate Facebook activities and online video.

Increasing active advertisers

In 1Q16, the company’s active advertisers stood at a strong 3 million on Facebook and over 200,000 on Instagram. Facebook is leveraging its ad products such as Lead Ads, Slideshow, and Dynamic Product Ads to bring in more advertisers.

Improving ad relevance

Facebook uses programmatic ads, which target ads based on information generated online by users. Moreover, the company provides advertisers with measurement tools like Conversion Lift and the Facebook Pixel, which help drive business results and make ads more relevant.

Facebook constitutes 5.4% of the PowerShares QQQ Series 1 ETF (QQQ).