Facebook’s Growth: Why Mobile Users Are the Key

Facebook’s (FB) mobile monthly active users (or MAUs) constitute about 91.5% of its total MAUs, which stood at 1.65 billion in 1Q16. These results show the significant shift of users to mobile devices, which influences marketers to catch up with the trend.

Facebook remains well ahead of Twitter (TWTR) and LinkedIn (LNKD) in terms of mobile MAUs, and it’s expected to benefit from the shift. Facebook’s ad inventory on mobile platforms is likely to increase, driven by a rise in demand from brand marketers.

Facebook continues to capitalize on consumers’ shift to mobile devices, increasing the number of marketers using ad products and making ads more relevant and effective through expanded tools for marketers

The company continues to invest in 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 an array of videos according to their interests. In fact, the company is planning to provide a dedicated space for videos on Facebook, which will segregate Facebook activities and online video.

According to a report from eMarketer, US (IVV) digital video ad spending could grow to $14.8 billion in 2019, reflecting a healthy compound annual growth rate (or CAGR) of 23%.