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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 Reels are Getting New Ad Options

10/05/2022

Recently, Meta has been trying to up their game by focusing more attention on Reels. That’s because short form content has become one of the most engaging forms of social media today. I mean look at TikTok’s success, moving towards short form content is a no-brainer.

Read More: Meta Introducing New Monetization Tools for Creators

It seems as soon as TikTok gained popularity, Meta has had trouble keeping FaceBook and Instagram on top. However, Meta has announced some new options for Reels ads which, as you can guess will provide more than one benefit.

Reel Ads Intended to Engage Brands & Creators

For Meta to increase their focus on Reels, they need to have incentive for the Reels creators to continue creating them.

That being said, the new ad options will allow brands to engage with this new style. But more importantly, allowing creators to increase their revenue.

2 New Reels Ads

With the announcement of Meta’s new ads for Reels, comes the testing phase.

Currently, Meta is testing an image carousel for displaying ads at the bottom of Facebook Reels. This ad feature would consist of up to 10 images displayed as scrollable ads attached to the bottom of a Reel.

Does this feature ring any bells? If it does, that’s because TikTok has a similar feature for ads as well. Seems like Meta is continuing its trend of mimicking features from other platforms.

Nonetheless this promotional feature is geared to link back to the initial Reels performance. This is great for content creators who make Reels since this provides an opportunity to monetize content further.

Not to mention that it’s an excellent way to attract brands to viral Reels.

Read More: Instagram’s New Tool For Tipping Creators Is Here

Another ad option that Meta is testing is called ‘post-loop ads’. It’s exactly as it sounds, after a Reel finishes a video ad will begin playing. These loop ads can run up to 10 seconds but users can also completely ignore them and skip past. Take a look below to see what a post-loop ad looks like.

Source

This Reels ad option is another opportunity for creators to monetize content. However, when users see the ad notification pop up, you can bet it won’t be a welcome interruption.

But then again, this ad option is still being tested so the way it unfolds might change.

Who Will Win at Monetizing Short-Form Video Content?

Meta is the latest joining the pack of platforms that have already been brainstorming and testing different ways to monetize short-form video content.

YouTube was quick to move on figuring out new ways to monetize short form content. They recently announced that the YouTube Partner Program is now available to creators who produce Shorts. And of course TikTok has been working behind the scenes to make more opportunities for creators to monetize their content.

Read More: Is TikTok On The Decline?

Then again, in the social media landscape things can change as often as the way the winds blows. The coming months will give users a better idea of what’s next for short-form content monetization and who the leader of the pack will be.

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Facebook Introduces Community Chats

09/16/2022

Facebook launched a new feature for Messenger and Facebook groups called Community Chats, Metas CEO, Mark Zuckerberg, announced via a Facebook post.  The goal is to expand the chat experience to more Facebook Groups, so the feature allows you to browse chats organized by announcements, topics, events and more. That way, you can connect with your group members on a deeper level, not just via comments and posts.

The new Community Chats, previewed earlier this year as “Community chat channels,” also resemble social collaboration platforms like Slack, Teams, and Zoom’s upcoming Team Chat. Yes, Meta finding inspiration from other apps isn’t exactly news. However, the social media mogul is still unsuccessfully trying to replicate TikTok with its Instagram Reels.

Read More: Is Facebook The Boomers’ App?

Still, the chats seem to have some cool features, it doesn’t stop at texting. They offer support for audio channels as well, including up to 30 members. People can also turn on their cameras and present.

A new feature will begin testing in the “coming weeks”. Facebook will test a feature called Community Chat within Messenger, which will allow you to create a Facebook group for your casual group chat. Not all groups can access Chats now since the feature is currently only available for certain channels, but Meta says more groups will have the feature soon.

How Does It Work?

It’s on the group admins to choose from several options to help their community connect. The admins can start chats around specific topics, event chats for outings or meetups, broadcast chats for admins to announce group-wide updates or admin-only chats for collaboration with other admins. They can also create audio channels and allow group members to share live commentary.

Once in the audio channel, participants can also enable video. An example Facebook gave involves a chemistry class group. Admins of the group can create audio channels for study groups for chemistry students during finals season, and participants can turn on video for live tutoring during finals.

Read More: How to use Community Chats in Your Group

Admins also got a suite of tools that will help them manage both chat and audio experiences: blocking, muting or suspending group members, and removing members or messages, as well as Admin Assist. The latter allows admins to s

Administrators will be able to use a variety of tools to keep their communities well-maintained, including auto-moderation features that can boot members who post illegal content. They can set custom criteria that will automatically suspend users and remove reported messages, or even stop some violating videos from being sent.

So, Why Is This Beneficial?

You can start a conversation in Groups by posting and commenting, but Community Chats offers a much more effective way. Instead of waiting for comments to accumulate under a post, you can dive right into the topic right then and there and receive real-time responses from your group members.

Read More: Facebook’s Home Tab Will Be A Discovery Engine
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