Facebook Inc (NASDAQ:FB) has recently revealed its plans about Internet of Things, payments, drones, wearable and healthcare, but it seems the major driving factor in Facebook Inc (NASDAQ:FB) growth is ads business. The company is investing massively in ads. So meticulous the approach of Facebook Inc (NASDAQ:FB) is that it is swiftly coming as a competitor to Google, the search engine behemoth. Mobile ads remain the strong area for Facebook. Facebook is using its Video ads and videos in general, to imbibe investment from the advertisers. Facebook could also use Instagram and other messaging platforms to target millions of users, a majority of which are millennials, with the ads. A recent report from CITI group has said that given the current circumstances, Facebook Inc (NASDAQ:FB) is expected to grow by 33%, even without huge investments and efforts.
An article on BI said that CITI has come up with one magical equation which is dubbed as ‘MACE’ analysis. According to the equation, there are four main drivers which would define the path of Facebook Inc (NASDAQ:FB) growth in the ads business. The first factor is monthly user growth, which is not a problem for Facebook Inc (NASDAQ:FB). The social media platform has already 1.4 billion users which are expected to increase. The second factor vital in Facebook Inc (NASDAQ:FB)’s ads business is ad pricing. The third and fourth factors are ads load change and number of clicks or the engagement level of users with their newsfeeds. All these factors, if taken at their current pace can add a 33% increase in Facebook Inc (NASDAQ:FB) ads revenues. Add the latest plans of Facebook Inc (NASDAQ:FB) like videos and in-app ads, the revenues could be huge.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).