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Facebook Revenue Has Doubled From Last Year, Quarterly Data Reveals COVID-19 Pandemic Plus Rising Ad Prices Leads to Revenue Growth For the Platform

author image Written by: Nicole McCormick           Categories - In The News, Paid Ads

Facebook has nearly doubled its Q1 earnings from last year, according to earnings reports released this week.

The report states that advertising revenue dramatically increased by 146% from 2020. This is interesting, considering the fact that the number of active Facebook users only increased by 8%.

CFO outlook commentary within the earnings report stated that the increase in revenue was largely due to rising ad prices.

“We are pleased with the strength of our advertising revenue growth in the first quarter of 2021, which was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered,” the report states.

It’s also important to note that digital advertising has increased across the board, not just with Facebook. With stay-at-home orders, working from home, and online learning becoming the new norm, people spent more time at home in front of screens than ever before. Along with an increase in demand for online advertising, competition for ad visibility and ad prices also grew this past year.

Other Changes Coming to Facebook 

Apple recently released iOS 14 and IDFA, which means all Apple users will have to consent to cross-app tracking. Advertisers will also have to provide two short lines of text to explain this to users.

Facebook has spoken out against the change, arguing that it would hurt publisher revenues.

“We know this may severely impact publishers’ ability to monetize through Audience Network on iOS 14, and, despite our best efforts, may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14 in the future,” said Facebook.

Facebook later made the decision to adopt Apple’s SKAdNetwork API, but stated it would not implement Private Click Measurement (PCM), with the reasoning that it doesn’t capture the complexities of the user journey. Facebook instead decided to create Aggregated Event Measurement (AEM) to measure conversion events on iOS.

Revenue Forecasts For 2021

With the increase in ad prices driving revenue growth, Facebook expects that revenue will either continue to increase or remain stable throughout 2021.

“We expect second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as we lap slower growth related to the pandemic during the second quarter of 2020,” said Facebook’s CFO Sheryl Sandberg.

“It’s also on us to keep making the case that personalized advertising is good for people and businesses and to better explain how it works so that people realize that personalized ads can be privacy-protected.”

READ MORE: Facebook Revenue Almost Doubled: Here’s What It Means For Advertisers  

READ MORE: Facebook’s Ad Business Drives Surge in Revenue, Following Google’s Act  

Nicole McCormick

Nicole is a wordsmith wizard, passionate about the written word and an avid storyteller who uses creatively crafted prose to help bring your brand’s story to the next level. A former journalist with writing credits in both local and national news publications and a few newspaper awards under her belt, Nicole now enjoys telling your stories and finding new and creative ways to create valuable content that resonates with audiences in the digital landscape.

Facebook Removes Support For Podcasts

05/03/2022

Facebook is ditching podcasts and plans to stop offering them from June 3.

The social-media giant will no longer allow users to add podcasts to the service as of this week but plans to remove them altogether starting June. Both its short-form audio product Soundbites and the central audio hub will be discontinued, Bloomberg reports.

These options were first introduced last April, as part of Facebook’s broader effort to promote social audio. That’s when Meta presented a range of upcoming podcast options: on-page display tools and direct connection options. Both were supposed to let Facebook users listen to podcasts from within the app without leaving it. In June, Meta launched its podcast support tools, with several launch partners.

Now, not even a year later, Facebook is shifting its focus to other initiatives.

We’re constantly evaluating the features we offer so we can focus on the most meaningful experiences – a Meta spokesperson said in an email sent to Bloomberg. The person allegedly added that they don’t have a specific date on when Soundbites and the audio hub would shut down but it will be in the “coming weeks.”

Facebook will also cut the site’s Soundbites and Audio hubs and integrate its Live Audio Rooms feature into its broader Facebook Live suite. They also said they will not warn users of this, but will rather let creators break the news how they see fit.

Why the change? Probably because they need to save some money:

After the start of COVID, the acceleration of e-commerce led to outsized revenue growth, but we’re now seeing that trend back off. However, based on the strong revenue growth we saw in 2021, we kicked off several 2 multi-year projects to accelerate some of our longer-term investments, especially in our AI infrastructure, business platform, and Reality Labs. These investments are going to be important for our success and growth over time so I continue to believe we should see them through. But with our current business growth levels, we’re now planning to slow the pace of some of our investments.

This might not be a big deal and some significant news for everyone, but as Andrew Hutchinson from Social Media Today noticed, it shows how Facebook’s focus can easily shift and ‘betray’ the creators that use the platform. What does that mean for future Meta visitors and builders?

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Facebook Launches New Novi Pilot

12/14/2021

Earlier this week, Meta launched a new trial version of the Novi digital wallet – this time, for use via the Whatsapp mobile app. Users in USA and Guatemala can now send and receive money right in their WhatsApp mobile app.

You might be wondering what the Novi app even is. Well, remember when Facebook announced the rebranding, the Metaverse, and how it will touch every product they build? It turns out this could be a part of it all.

Novi is a digital wallet that should enable people to send and receive money internationally without leaving their homes. There are no fees, and the process doesn’t last long. It uses blockchain technology and a digital currency called USDP – a cryptocurrency of Paxos – a coin that uses the Etherium blockchain technology and is attached to the U.S. dollar. So, 1 USDP = 1 USD.

According to Facebook, or Meta, if you will, Novi has been developed to enable fee-free, cross-country money transfers. If you decide to sign up, you will need a valid government ID and a video selfie. Then, you can add money to the account using your debit card and your contact list.

Things you should know

Novi is officially a regulated financial company from Facebook, but also has built-in protection against fraud and constant monitoring for suspicious activity. Yet, some regulators are hesitant to give Facebook more power and influence, especially considering the amount of user data they have access to.

For them, it seems that adding payment options is a step too far. That’s why Novi acts independently from Meta and wants to distance itself as much as possible, to maximize acceptance. Using Novi on Whatsapp won’t change Whatsapp’s privacy settings and should be completely safe, according to Facebook.

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