Facebook's reliance on traditional Web advertising is a thing of the past. Two years removed from its controversial initial public offering, the social network has rapidly become the second-biggest recipient of mobile ad dollars, behind Google. Those tiny smartphone promotions now account for over half of sales.
Even with Facebook capturing headlines in 2014 for its massive acquisitions of WhatsApp and Oculus VR, the success of Wednesday's second-quarter earnings report will hinge on the trajectory of the company's ad business. That now includes video ads – 15-second spots that Facebook introduced in March for a select few brands, helping businesses bring a TV-like experience to mobile viewers.
The momentum has driven Facebook shares up 27 percent this year to $69.27 as of Tuesday's close, near the stock's record of $72.59 reached in March. (Click here for the latest price.)