Facebook Inc (NASDAQ:FB) More Than Doubles Its DAU Metric In Four Years

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Facebook Inc (NASDAQ:FB)’s daily active users (DAUs) have more than doubled in a span of four years. The company reported having over 1 billion DAUs in 3Q2015, up from just about 457 million in 3Q2011. The sharp increase over a few years is credited to Facebook’s aggressive mobile push. People tend to be closer to their mobiles than desktops, thus they are able to login to Facebook more frequently.

Facebook Inc (NASDAQ:FB) is attracting increasingly more daily subscribers, a trend that is helping boost engagement on the platform. From less than 500 million daily users four years ago, the company surpassed the 1 billion daily users mark at the end of the latest quarter. In the same period, the company reported that its monthly active users (MAU) had increased to 1.55 billion, sharply above 1.35 billion MAUs a year earlier and 800 million MAUs four years ago.

User monetization

With more people coming to its platform daily, Facebook is able to build a database of valuable information that marketers seek to increase their ROI. The massive user information that Facebook holds has allowed the company to increase the number of its advertisers and as well advertising revenue. Better understanding of a user’s social connections and online activities allow marketers to more effectively target potential customers.

Mobile contribution

It is emerging that aggressive push to mobile is contributing to the rapid rise in daily visits to Facebook. Four years ago the company didn’t have a vibrant mobile presence. But after it build a downloadable app for mobile users, its mobile subscriber numbers have spiked.

The shift to mobile is also helping Facebook to boost its advertising revenue with marketers now willing to pay a premium to reach out to mobile users. Mobile ads are considered more effective and result in higher ROI for marketers. For example, marketers are able to easily push purchase recommendations to mobile users when they are shopping online or just about to walk into a store.

Facebook Inc (NASDAQ:FB)’s revenue from mobile increased 71% YoY in 3Q and contributed 78% of ad revenue in the quarter.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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