Facebook Inc’s (NASDAQ:FB) market share in the digital advertising industy will likely double in the next four to 5 years, Arvind Bhatia said in a recent interview on CNBC.
According to the Sterne Agee Managing Director for Interactive & Digital Entertainment, Facebook Inc (NASDAQ:FB) looks even better when analyzed today that when it was scrutinized in the past. The executive said that the world’s largest social network is poised to deliver better results in the digital advertising space partly because of its apps. He explained:
“The long-term story for the Facebook platform looks even stronger than before. In addition, you have other apps that they have in their family, for example Instagram, which you guys have been talking about earlier, [and]Facebook Messenger. Those are both apps that really have not been monetized yet. Off course, soon to come [is]WhatsApp which hasn’t closed yet but should be closing very soon and that provides them a whole new world of opportunities. So I would say that this company’s positioning within digital advertising look stronger than ever before and we’re expecting their market share to essentially double over the next four to five years.”
However, is Facebook Inc (NASDAQ:FB) monetizing fast enough or strong enough? Bhatia was asked the question and he replied:
“Absolutely. If you look at – not only the top line but also through the bottom line – is very impressive. You saw the mobile advertising business up 150%. [When you also] look at the flow through, their incremental margins were 86% which means that for every incremental dollar, 86 cents of that is going to the bottom line. That is a very impressive business model.”
Watch the video below where Facebook’s problem with the younger generation was also discussed.