Stock in News: Facebook (NASDAQ FB) To Benefit from Rise in Advertiser Demand Rise

Facebook Inc (NASDAQ FB) showed a slight decline in share of overall internet time in August, but the social network is holding steady at a 20% share of mobile minutes. JPMorgan analysts also believe a pickup in brand ads and organic video in the third quarter may give Facebook’s results a boost.

Facebook Inc (NASDAQ FB) may benefit from a pickup in brand advertising and organic video in the current quarter. They also predict that strong demand for the company’s advertising products could help the company raise its prices. In a report dated Sept. 15, 2014, analysts Doug Anmuth, Kaizad Gotla and Diana Kluger said Facebook Inc (NASDAQ FB) saw a month over month decline in overall internet share time, which fell to 17.5%. Facebook saw a year over year increase in overall internet minutes though, as last year’s share was 16.3%.

In mobile minutes, the social network grabbed a 20% share, not counting WhatsApp and Instagram. That’s compared to other social services like Twitter Inc (NYSE TWTR), Snapchat, and Facebook-owned WhatsApp and Instagram. The JPMorgan team said these social services saw a relatively flat share year over year at about 5%.

Facebook Inc: FB Stock On An Expected Rise

The analysts also pointed out that Facebook Inc (NASDAQ FB)’s share of total U.S. internet minutes is nearly six times the number of minutes spent on competing social services. When including Instagram and WhatsApp in with Facebook’s total minutes, the social network marked a 26% year over year growth in August. That’s a bit of a deceleration from July’s 29% year over year growth.

They also noted that so far in the third quarter, there appears to be strong brand advertiser coverage. Anecdotally, they say it appears that Facebook Inc (NASDAQ FB) has enjoyed increased usage by consumer packaged goods and automaker brands.

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Facebook Inc (NASDAQ FB) Business News

Specifically, the analysts say the automaker segment appears to have been especially active, with major brands like Mercedes-Benz, BMW and Acura advertising on Facebook during the current quarter. They also noted major activity from consumer goods like Lay’s, Pizza Hut, Quaker, Kellogg’s, Schick Hydro, Glade and others.

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