Facebook have announced that it will be ‘making it rain’ spending big this coming 2015 and unsurprisingly, projected a slow down in revenue.
CFO Dave Wehner has advised expenses are about to get pricer with an estimated 55-75% increase as it intends to put some serious investment into its acquired product range which includes Instagram, Oculus and WhatsApp.
Facebooks spending spree has been fuelled by the surge in mobile advertising with a 59% jump in third quarter revenue. Mobile Advertising represents two thirds of Facebook’s advertising revenue and the ad prices themselves on the social network have been tripling each year as marketers around the world flood the worlds largest social media network.
In the last 3 months ending September Facebook made 3.2 billion USD in revenue however its acquisitions such as Oculus and Whats app are still yet to make money, with Whats app reporting a $232.5 million USD loss. The need for investment in its acquisition portfolio is obvious and if the company and its investors want to capatilize early, the spend will have to be generous. After all you gotta spend some to make some