Facebook experienced accelerated growth during 2013, largely as a result of its monetizaton of smartphone and tablet users via mobile advertising. The company is now trading close to all-time highs, and, with the recent additions of Instagram and WhatsApp, has plenty of room for growth during 2014.

Acquired for a billion dollars in 2012, Instagram was seen as a bold purchase for Facebook at the time, as it was not yet a revenue generator. Facebook changed that in 2013, and they are starting to reap big rewards from the photo-sharing network, which now has more than 180 million MAUs.

A key change to the Instagram model was the recent addition of video capabilities. Selective ads from leading brands were added, and Instagram cleverly focused on only the most creative impressions that would fit with the overall aesthetic of the service. With Facebook’s billion-strong user base, Instagram has the potential to grow further still, with some analysts predicting revenues of more than $500 million by the year’s end.

A bigger surprise in industry circles was Facebook’s deal for WhatsApp, the popular messaging service that primarily services the youth demographic.

The massive $19 billion deal highlights Facebook’s determination to remain innovative and stay in touch with the mobile app boom. Facebook sees – as many do – the future of web activity becoming increasingly mobile-based, and is seeking to assert itself as the dominant platform.

Moving forward, Facebook remains an expensive stock, but the firm is doing all the right things – growing its user base, focusing on mobile ads and apps, and investing in product development at a thrilling rate. Facebook’s ability to monetize its increasingly large audience is proving a real boon to revenues and earnings. They are showing no signs of slowing down, and with an appetite for innovation and growth this big, who knows what 2014 will bring?