NEW YORK ( TheStreet) -- Facebook (FB) - Get Report is once again showing its mobile prowess: During the second quarter, mobile advertising accounted for 76% of the social media giant's total advertising sales, up from 62% during the same quarter last year.
"It's clear that Facebook is a mobile monetization machine," said Daniel Knapp, director of research at IHS Technology. "Next quarter, we think mobile will account for 82% of its total ad revenue.'
"Facebook is the biggest threat that Google has ever had," Knapp said. "Google is only succeeding in the search aspects. Google doesn't have this massive log-in data of 1.5 billion users. When people watch YouTube, they don't log in, so Google is partly driving blind."
Facebook's treasure trove of user data is proving to be highly profitable when it comes to helping advertisers target specific demographics.
Although Facebook's net income of $0.50 a share beat Wall Street's expectations of $0.47 a share, profits dipped 9.1% year-over-year on the heels of an 82 percent jump in costs.
But Knapp said it's not yet time for the social media giant to focus on cost management.
"Zuckerberg has made it very clear from the beginning that audience comes first and monetization comes second," Knapp said.
Facebook's research and development costs rose roughly 138% year-over-year, but Knapp said those costs are justified given the competitiveness of the ad business.
Going forward, Knapp thinks Facebook should move away from being a platform and instead become more of an operating system, like Apple's (AAPL) - Get Report OS X or Microsoft's (MSFT) - Get Report Windows, for the creation, distribution and monetization of content.
"That's because the next pot of gold is TV ad revenue -- that's what Facebook is eyeing," he said.