Facebook Inc. (NASDAQ:FB) still continues to exhibit great leadership in most aspects, one being the advertisement industry. The company is reported to have brought in about $11.4 billion in social media advertising, thus accounting for 75% of overall social ad spending on social networks.
It is no wonder that the company continues to experience extremely high annual returns. The strategic business plan adopted by the company to increase focus on accommodating more ads has paid off.The company has done an excellent job in identifying the market gap for advertising as well as exploiting it. Facebook’s platform provides extreme ease for individuals and firms to advertising products as well as the general appearance that provides marketing appeal.
A few of Facebook’s features are attributable to the big percentage of social ad spending that the company commands. News feeds played a key role as well as the ability to tag and see what other people like. This increases the probability of the advertising success.
The video support feature that was introduced in June 2014 has also played a hugely important role for the advertising market in social media. This feature allows individuals, marketers and businesses to give a comprehensive overview of their products. The feature has greatly facilitated the marketing success and thus making a mark in advertising income.
Another factor that contributed to the success of Facebook in terms of advertising is the fact that the social media platform has a wide following. As of 2014, Facebook was reported to have over 2 billion users. This massive following has boosted the exponential growth of the network, thus opening new possibilities as well as the expanse of its influential capacity.
The ad market is expected to grow up to $19.8 billion by the end of 2015 and $24.2 billion by the end of next the subsequent year. The company continues to exude great capacity for growth. Facebook Inc. (NASDAQ:FB) is most likely going to maintain a huge market share especially with the recent acquisition of major brands and venturing into different fields. This diversity will give the company a lot of competitive edges.