Tomahawk, WI 10/07/2013 (BasicsMedia) –  Facebook Inc (NASDAQ:FB) has enjoyed one of the greatest comebacks in the history of the stock market. The company already did quite well when it turned its fortunes in the stock market around primarily on the back of a very strong performance with its mobile ad strategy. The first time it announced that it was going to put a lot of emphasis on the mobile ads, most analysts and investors thought the company’s executives were embarking on a battle they will never win. It turns out the company was right, and everyone else wrong. Will it surpass the earlier figures?

 FB and Google are both expected to do very well while Yahoo will underperform when it comes to mobile ads. The decision by FB to go into the yet to be tapped into world of video advertisement is another one which has created a lot of excitement within the industry. There was a time when a few suggestions flew around to the effect that the company was going to invest in television ads. The idea hasn’t been killed yet but there is hope that this could also create a number of new opportunities with which FB could make a lot of money in future.

 While some companies could yet be affected by the bumpiness which has been existent for quite some time in the ad world, others could yet make it out of this trying period with some strong performances. One such company could be FB. The challenge remains how to convert the traffic which they enjoy from the mobile ad business into real business and opportunities for making a lot of money. The company has continued to show a lot of positive traction even in the third quarter of 2013, way beyond analyst and other industry experts had predicted.

The areas which have made a huge contribution to FB’s strong performance in the ad business include custom audiences, direct response dollars and installations of apps. These three have been the three key which have driven the strong performance experienced by FB in the last quarter, and will continue doing for the remainder of the year. I expect the numbers to increase by up to 7% in the third quarter only. On the other hand, when looking at year over year growth, I don’t expect FB to post anything below 60% in its revenues from mobile ads.

FB’s intentions to develop new products, ostensibly Instagram and video ads, have the capacity to drive its revenues from ads further than ever before. This is a company which comes up with new products quite a lot. But the performance of these new products will depend greatly on the ability of the company to maintain interest in its social network services, for which it is well known. The bread and butter of FB is the provision of top quality social network services, and as long as it is able to penetrate the markets it hasn’t thus far, the future looks quite awesome.

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