Tomahawk, WI 10/08/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) has enjoyed one of the most amazing turnarounds since the launch of its IPO in 2012. The post-IPO results weren’t what the company or the rest of the industry was expecting from a company such as FB. Its shares have grown by more than 85% in 2013 alone. A number of analysts are of the opinion that this stock can continue experiencing a lot of growth, more than it has managed up to this point. The decisions it is taking and products it is introducing in the market are capable of boosting its growth even further.

 It is not a secret that FB has made a lot of money from ads. When it saw that mobile devices were on the increase and most of its daily and monthly active users were accessing the social media site through these gadgets, the company quickly decided to move into producing ads which were specially geared towards this market. The company hasn’t settled at that since it recently announced that it intends to develop video ads very soon. Not only that, but it also hopes to come up with new ads which are specially designed for Instagram.

Facebook is projected to be making close to 50% of its total revenue from mobile ads. This is what I expect the company to post when it announces its third quarter results in a few weeks time. The company is reaping the rewards out of a very strong growth in pricing, more than it has ever done in the past. Mobile app installations have played a major role in helping the company experience this increase in growth of pricing. Once the company starts monetizing Instagram by the fourth quarter of this financial year, its earnings will grow exponentially.

Retail advertisers also have the capacity to increase Facebook’s growth more than they have done thus far. This level of growth will mostly be driven by the larger or bigger retails and I expect this to be the case from 2014. The full effects of this level of growth will not be experienced in 2013, although it has already started. However, by 2014, the foundations will have been firmly established to ensure that the company experiences real and substantial growth from the many retailer advertisers it has been interacting with this year.

FB is looking at different key measurements than those it has been associated with for quite some time now. It intends to convert the digital audience metrics to resemble those usually associated with the more traditional metrics used on television. Television ad spending has risen up to $200 billion all over the world. This is what FB intends to use as the benchmark to propel social media ads to attract even 1% of what the televisions attract. If it succeeds, then it will attract a further $2 billion into its coffers. I expect FB to do better than $2 billion, though.

I firmly believe that FB hasn’t begun scratching even the base of its full potential.

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