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"Facebook has shown signs of growth in its mobile advertising revenues in the third quarter, prompting its share price to rise nearly 13%.  Mark Zuckerberg&amp;#039;s social network, which now has 1 billion members worldwide, said on Tuesday (October 23) that it gets 14% of its advertising revenue from mobile services and apps.  Investors had previously been concerned that Facebook would struggle to make money from smartphone and tablet users, prompting a major nosedive in its share price since listing in late May, slashing around $40bn off its market value.  But Facebook said that mobile advertising revenues were around $150m in the third quarter of 2012, up from around $40m to $50m in the previous three-month period. It is thought that Facebook made almost nothing from mobile in the first quarter of this year. Total advertising revenue at Facebook increased 36% to $1.09bn, up from 28% growth in the second quarter.  However, revenue from the social network&amp;#039;s other businesses, such as payments, increased just 13% to $176 million.  Overall, Facebook reported a loss of $59m (\u00A337m) during the third quarter, despite seeing revenues rise 32%. The social network said that its income rose to $1.26bn between July and September, but it still posted a second successive quarterly deficit, following the $157m loss in the second quarter. Mark Zuckerberg, the founder and chief executive of Facebook, said in a conference call with analysts yesterday that mobile was the &amp;quot;most misunderstood aspect&amp;quot; of his company. He also hit out at the &amp;quot;myth&amp;quot; that Facebook was unable to make money from the around 604m users who log on to their Facebook profile every month using a mobile device. &amp;quot;Over the long run we&amp;#039;re going to see more monetisation per time spent on mobile than on desktop,&amp;quot; Zuckerberg said. Colin Sebastian, an analyst with Robert Baird &amp;amp; Co, told Reuters that the results dispel &amp;quot;the most bearish view that Facebook couldn&amp;#039;t monetise people on phones or tablets&amp;quot;. &amp;quot;In about a six-month period they&amp;#039;ve actually started to generate decent revenues form their mobile applications,&amp;quot; he said.  &amp;gt; Facebook tests promoted user posts in the US &amp;gt; Facebook introduced &amp;#039;want&amp;#039; and &amp;#039;collect&amp;#039; buttons &amp;gt; Facebook gets into e-commerce game with Gifts However, Sebastian noted that Facebook still needed to demonstrate that mobile ads can generate the same revenue as its traditional ads, as well as gain the trust of buyers that they are effective.  But following the results, the company&amp;#039;s share price jumped nearly 13% to $21.97 in after-hours trading on Tuesday. Facebook&amp;#039;s results were hit by the woes at social game maker Zynga, which announced layoffs of 5% of its staff on Tuesday. Revenues generated for Facebook from Zynga payments were down 20% year-on-year. The Farmville-maker brings around 7% of Facebook&amp;#039;s revenue.  But Zuckerberg was bullish about the prospects of Facebook gaming in future. He said: &amp;quot;The interesting thing is that the rest of the games ecosystem has actually been growing.  &amp;quot;Our monthly payments revenue from the rest of the ecosystem increased 40% over the past year, since payments has been adopted.&amp;quot; The 28-year-old also said that Instagram now has around 100m users, up from 27m when Facebook bought the photo-sharing app for around $750m in April.  "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.digitalspy.com/media/news/a432960/facebook-shares-up-on-mobile-advertising-growth/>