The stock is up more than 19% in after hours trading following a Q2 report that appears to have reassured investors who feared that smartphones and tablets don’t have enough screen space for ads. Facebook says that mobile ads accounted for 41% of the total ad sales in the quarter, a big jump from 30% last year. The company generated $333M in net income, up from a $157M loss in the period last year, on revenues of $1.81B, +53.1%. The revenue number was well ahead of the $1.62B that analysts anticipated. And adjusted earnings at 19 cents a share beat forecasts for 14 cents. CEO Mark Zuckerberg drove home the main message, saying, “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.” Ad sales accounted for 88% of Facebook’s revenue, and were up 61%. The company saw $214M from payments and other fees, +11%. While the report has little detail about particular sources of income, the company says that it introduced video for Instagram in Q2, and 5M videos were uploaded in the first 24 hours.
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That’s what actors David Koechner (Anchorman 2) and Harlan Williams (Half Baked) are claiming to have created with the social media platform’s new video tool. Twitterers have taken to the new function since Instagram introduced it last month. As with Twitter‘s 6-second looping video Vine app, Hollywood marketers are exploring ways to exploit the promo potential in its 15-second video capability starting with Open Road, who jumped ahead of the competition with yesterday’s Jobs Instagram trailer. Koechner and Williams may or may not be “first” Instagrammers on the block to string together a narrative story told entirely in quarter-minute sequences, but they may be the first to partner with producers (Karen Lucey from Off the Record Media and Steve Barnett), develop a script with two additional writers (Joe Homokay and James Penland), and carefully compose 8 15-second sequences of footage into a two-parter tale. The bud cop story shot on iPhones is dubbed Steady and Shakes. Check out the first segment via Koechner’s Instagram page: Read More »
Open Road is boasting the first-ever Instagram movie trailer with its new 15-second social media spot for Jobs, starring Ashton Kutcher as Apple co-founder Steve Jobs. It trumps the blink-and-you’ll-miss-it 6-second blitz of Twitter‘s Vine app, which just a few months back was positioning itself as Hollywood’s hip new marketing tool. Or does it? Jobs hits theaters August 16. Watch:
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The popular photo-sharing smartphone app now also will handle 15-second videos, and include an image stabilization feature for iPhones that “will change video forever,” Instagram CEO Kevin Systrom says. In a brief demonstration at the announcement today, he showed how the process, called Cinema, can eliminate the shakiness that characterizes videos made from hand-held smartphones. In addition, Instagram will have 13 filters designed to help users enhance and edit images. “We’re still committed to making sure you have control over all of your content,” he says in a blog post. “Only the people who you let see your photos will be able to see your videos. And as with photos, you own your videos.” The initiative will help Instagram compete with Twitter‘s Vine video sharing. Some 130M people use Instagram. The new apps for iPhones and Android powered phones are available today. Facebook paid $1B last year to acquire Instagram.
Netflix, Instagram and Pinterest services in the Northeast were interrupted last night when Amazon’s Elastic Compute Cloud in Northern Virginia went offline because of severe thunderstorms, Forbes reports. Amazon EC2 servers handle web traffic for numerous companies in addition to those mentioned. Service was disrupted at around 11:21 PM Eastern time according to Amazon: “We are investigating connectivity issues for a number of instances in the US-EAST-1 Region.” Affected users aired complaints on Twitter and Facebook. Storms that caused the outages also knocked out power in broad swaths from Indiana to New Jersey, according to the Washington Post. Netflix appeared to be back online as of 1:15 am Eastern time. Mashable reports that Pinterest, Instagram (whose pending purchase by Facebook awaits regulatory approval) and Heroku were still down this morning in some areas. Amazon reported most services had been restored before dawn Eastern time. Last night’s outage follows a 6 1/2-hour outage on Amazon’s EC2 two weeks ago. Forbes pointed out that one of the selling points of “cloud computing” is that there are redundancies to prevent just such occurrences.
The cash and stock deal is the biggest to date for the social network colossus, and gives it one of the most popular smartphone photo sharing apps. After just two years, Instagram has about 30M users, almost all on iPhones — the company introduced a version for Android phones last week. The application gives users the ability to create special effects with the photos they take on their smartphones, and share the end result with others on Facebook. CEO Mark Zuckerberg said on his Facebook site that he’s “committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.” Facebook announced the deal as it prepares to go public with a stock offering expected to raise $10B.