Facebook Growing Up With Mobile Ads: Hayzlett

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July 25 (Bloomberg) -- Bloomberg Contributing Editor Jeffrey Hayzlett examines the surging demand for Facebook's mobile advertising and looks at their business model for mobile ads. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Jeff hayzlett, bloomberg contributor.

What was reaffirmed for you yesterday by mr.

Zuckerberg?

Trading in birkenstocks for wingtips.

Finally seeing the company grow up.

Mobile has been there a long time.

The mobile usage am a we have been talking about the of mobile.

The biggest thing they did was allow me to be able to start to buy the ads on mobile.

I buy ads every day.

I spend $50 a day as a small business.

I used to buy millions when i was at kodak and now i buy them every single day and i can do it on my mobile phone.

Do they work?

Absolutely.

Trading for likes.

I do not like that portion of it and i don't like the fact that someone at facebook has to approve that ad or post.

I still don't like that and i think the big advertisers don't. we just show the video -- rosetta stone, which i am a big supporter of.

I still can't speak french.

But the quality names out there, will they be there in 24 months?

Absolutely.

About 20% of the total revenue are coming from the big companies.

Most of the other ads are the $50 or a hundred dollar buyer who are promoting the local taken shop or dry cleaners.

Really some of them are not the best ads in the world.

The overarching fear that facebook is losing its cool or at least people are not hanging out as much.

That was addressed in the earnings.

The number of daily active users increased 27% from last year.

Jump in there.

That was the big issue going into earnings, that people were concerned the more advertising that was coming on, you will lose your loser pays, and that did not happen.

They still have to be careful because if you clutter up with too much advertising you can lose users.

Is facebook a blue-chip stock?

I do not think yet.

The big advertisers are still looking at it.

But definitely one of the in mobile you need to own.

Just a sign how much facebook has come back, general motors back as a customer.

I think you have to look at the overall effect.

They are like a giant sequoia tree.

They really trade this canopy for this ecosystem that operates around them.

It is not just them but all the other ancillary businesses kicking off because of facebook.

This is really what they do.

It helps them pump more and the economy and the business in general.

Yesterday afternoon was a sea change.

The issues they are focused on like home and grass search and whether they are gaining traction.

Almost image compared to the brute force of numbers.

Remember who is using this.

Singing -- sitting at home, local people.

I encourage everyone to buy an ad in manhattan you do that -- you understand the business model.

This text has been automatically generated. It may not be 100% accurate.

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