Tomahawk, WI 10/30/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) has grown in many aspects in the last few years. The company has seen its value grow manifold and in some quarters, it has become a worthy competitor to other tech firms such as Google Inc, which has dominated the Internet for quite some time. It has seen a he improvement in its growth in the mobile segment during the first three quarters of 2013, and this is projected to continue for an extended period. This level of growth, in the mobile sector, has come as a major surprise to analysts and investors alike in the tech industry.

Instagram Can Help FB Grow its Numbers

I see FB continuing to enjoy this level of growth in the mobile sector due to the addition of Instagram. Facebook Newsfeeds are still undersold, and if the company can focus on improving its performance in this segment, it has the potential to see a huge increase in its stock value. FB has the capacity to sell its Newsfeeds ads for mobile gadgets at much higher rates in order to make more sales and see a significant growth in its revenue and profits. FB’s mobile newsfeed ads go for between $3 and $6. FB can increase this rate without much difficulty.

Facebook Inc has sold around 6.1 trillion ads in the first quarter of 2013. This may seem to be such a huge number but the truth is that it can do much better than 6.1 trillion it sold in the first quarter of 2013. The company needs everything it can to change its financial position and ensure it enjoys fiscal stability that suffered a huge dent in the period immediately after the launch of its IPO. To its credit, FB managed to turn its fortunes around and is now in a more stable position financially, but it still needs to do more, and this starts with focusing on mobile newsfeed ads.

Increase of Smartphones To Benefit Facebook

Smartphones will not be less than 2 billion in the world in the next few years. As long as the number of Smartphone gadgets in the world continues increasing, the number of FB’s monthly active users will also multiply. FB has focused on building its total monthly users across the world to 4 billion. This ensures that its monthly users will improve significantly thus creating a positive demand for its mobile newsfeeds ads. Therefore, with increased demand, FB can still attract better sales and revenue even by increasing the rates for these services.

Instagram provides FB with a major catalyst that it can use to propel its numbers higher. Instagram currently boasts of around 150 million active users and it states that its numbers increase by close to 50 million every six months. Instagram has definite value to FB in terms of helping to boost its numbers beyond its current levels. If FB develops new features or better ways to increase Instagram’s value to the users, it will be on its way towards achieving its goal of becoming the major or dominant force where mobile newsfeed ads are concerned.

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