Rather than be a place in which content is discovered - where users share content that links to external destinations - Facebook is becoming a content destination in and of itself.įacebook’s original mobile ad model was an outgrowth of its use case: Facebook users shared content (UGC, or user-generated content) such as updates and photos / videos in the app, and Facebook native ads were fit into the newsfeed to seamlessly accommodate that. While Facebook has been loath to explicitly acknowledge the impact on ad revenue growth that ad load saturation presents to the company, it has been preparing for that reality for some time with a broad change in content strategy over the past year. As a result of this circumspection, the company’s stock price dropped by 8% in after-hours trading following the call. Unlike in previous quarters, however, during its Q3 earnings call, Facebook issued a word of caution: ad load in the newsfeed is reaching a point of saturation, and ad revenue growth will likely slow in the future. Mobile ad revenue amounted to $5.7BN in the quarter, at 84% of total ad revenues.Facebook has reached more than 1BN DAU on mobile, with total DAU climbing to 1.18BN and total MAU climbing to 1.79BN.Revenues for the company were up by 56% compared to the same quarter last year.Facebook’s Q3 2016 earnings report, released last week, was yet another impressive showing of continued growth (in both user base size and ad revenue) for the company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |