Friday 2 August 2013

Weekly Wrap Up: Facebook 'Likes' mobile advertising

On Wednesday, Facebook’s shares traded above $38 a share, the price at which it first sold shares to the public in May 2012. Facebook’s listing last year was one of the most eagerly anticipated floats in recent years but largely disappointed investors as its shares failed to rise.

What has driven up its share price now was the announcement that more than 40% of the company’s advertising revenues over the period came from mobile; a market that is growing enormously. New figures data firm eMarketer show that in the US in 2013, adults are expected to spend more time consuming digital media on their mobile devices than on their laptops or PCs. Yet Facebook’s predicament was that it failed to exploit this market until the latter half of last year. Last year in its second quarter earnings release, the company didn’t even bother to mention how much it made from mobile advertising.

It seemed that when Facebook came to the market there was a clear disconnect between creating a social networking site in a university dorm room and engaging with the market on Wall Street. The management failed to convince investors that it could increase profits and not users. Facebook did eventually wake up to investors' concerns and is allowing adverts in its news feeds and giving developers the opportunity to push their apps inside Facebook's own mobile platform. As a result, the social-networking company began to generate a growing proportion of its overall advertising revenues from mobile. The challenge for Facebook now is to maintain this momentum and to keep communicating to investors that its management is commercially sound and will keep taking advantage of this evolving market.

This week Abchaps attended the Reeves Corporate Advisory Summer Drinks on the Grange St. Pauls' Roof Terrace, The Tea with Investors Chronicle showcasing their digital products, and the amazing Darwin Strategic summer drinks party at The Royal Institution.

Baker Tilly has appointed associate director Alex Birch (previously of KPMG) to their restructuring and recovery team; whilst Eversheds has appointed Brett Rowland, specialist in intellectual property and pharmaceutical regulatory law, as partner in its London office.

On this day: New Facebook tab which enables you to creep back into your friends pasts. “On This Day” leads to highlights of your friends past activity, popular posts, birthdays and life events.

The biggest road cycling event ever in the UK is hitting London this weekend. RideLondon festival kicks off at 9am Saturday with FreeCycle. Cyclists of all ages, shapes and skill can take a spin around 8 miles of closed central London roads and soak up some of the capital’s famous landmarks and en-route entertainment. At 5pm, St James’ Park will host the Grand Prix races and will showcase the past and future Olympic and Paralympic champions of cycling.

The HOLI ONE Colour Festival is taking over Battersea Power Station this Saturday. Inspired by the Hindu Holi Festival to celebrate the arrival of spring, revellers are asked to turn up dressed in white where they will then be covered by clouds of coloured powder every hour from 2pm. This will all happen to an incredible cultural line up featuring some of the most impressive new electro DJ’s hitting the music scene.

Keeping to the sporting theme, the innovative street project Ping! London kicks off this weekend. For the month of August, London will see a series of 100-odd, free-play ping pong tables popping up in unusual and remarkable places. All you need to do is find a table, grab a paddle and play!

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