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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.

Massive Global Facebook Outage Affected Over 3.5 Billion People

10/05/2021

Yesterday was a pretty eventful day for influencers, social media managers, and casual social media users (or uneventful, depending on how you look at it). Yes, we’re talking about themassive global Facebook outage that saw Facebook-owned apps like Instagram, Messenger, and WhatsApp go down for over six hours.

For those living under a rock, the outage began around 11:40 AM eastern time on  October 4 and lasted until around 6:30 PM, affecting over 3.5 billion users worldwide.

It’s been reported that the outage caused significant damage to the social media giant, resulting in shares plummeting and costing founder Mark Zuckerberg an estimated $6 billion.

Besides platforms shutting down for several hours, some eagle-eyed observers also noticed that during the outage, the Facebook domain went up for sale. Considering the fact that Facebook and all its other platforms are now functioning as normal, it’s safe to say nobody was able to purchase the domain out from under them. However, it’d be pretty interesting to see how that situation would have played out.

So, what exactly caused such an unprecedented event? Facebook confirmed it was “configuration changes on the backbone routers that co-ordinate network traffic between our data centres caused issues that interrupted this communication” and had a “cascading effect… bringing our services to a halt.”

Facebook added that it is still trying to determine what exactly happened so it can “make our infrastructure more resilient,” but that there was “no evidence that user data was compromised.”

Once all platforms came back online yesterday evening, Mark Zuckerberg also issued an apology on his public Facebook page, posting:

“Sorry for the disruption today — I know how much you rely on our services to stay connected with the people you care about.”

Many have theorized that the outage was caused by something much bigger than just a glitch, and is related to former Facebook employee Frances Haugen’s upcoming testimony on Capitol Hill. Haugen is expected to testify today about allegations that the company “chooses profits over safety’

The Ripple Effect

Besides social media users being unable to post about their day-to-day lives or latest anti-vax theories, the outage had a massive effect on billions of people and businesses around the world.

Here’s one example: For over six hours, Twitter experienced a massive boost in popularity as Instagram and Facebook users flooded the platform in order to communicate with one another and find out more information about the outage. In fact, traffic was so unusually high that Twitter experienced its own small outage.

It’s also important to note that for some, this outage was merely an inconvenience that meant a day off from social media, but for small businesses and marketing professionals who rely on Facebook and Instagram to communicate with customers and market themselves, this outage was pretty devastating. Fortunately the outage was resolved in less than a day, and no significant damage was caused (with the exception of Facebook’s monetary loss and damaged reputation).

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Facebook shares report with content view insights

08/23/2021

Many marketers and businesses use Facebook to connect with potential customers, and that shouldn’t come as a surprise. After all, the platform has roughly 2.89 billion active users per month.

Those who use Facebook for the purposes mentioned above may be curious to know what the site’s users actually see – and now, there’s a report that offers that information.

Last week, Facebook published the ‘Widely Viewed Content Report’ as part of its Transparency Centre blog. The report offers insights to help readers understand what kind of content is more likely to appear in a user’s Facebook newsfeed.

“Transparency is an important part of everything we do at Facebook,” the company said in the report’s overview. “In this first quarterly report, our goal is to provide clarity around what people see in their Facebook News Feed, the different content types that appear in their Feed and the most-viewed domains, links, Pages and posts on the platform during the quarter.”

Specifically, the report includes views of public content in the U.S. between April 1, 2021 and June 30, 2021. It does not look at what users do outside of their newsfeed – say, on Facebook Marketplace or other areas.

Notable Findings

The report defines a ‘view’ as any instance where content appears on a user’s newsfeed – the user does not have to interact with the content in any way for a view to be counted.

The report shares that posts with no links are far more likely to be viewed than those with links. Specifically, 87.1% of posts viewed have no link.

One section in the report shows the top twenty web domains that are viewed on newsfeeds. Youtube ranked the highest, with Amazon, Unicef, GoFundMe, and Twitter following.

The report also includes lists of the most viewed web links, Facebook pages, and Facebook posts. Notably, almost all of the ten most viewed posts were posts that challenged readers to respond (i.e. “What is something you will never eat, no matter how hungry you get?”) The only exception is the sixth most viewed post: U.S. President Joe Biden’s post that reads, “100 days in—and America is getting back on track.”

Facebook plans to share similar reports in the future, with a possibility of this being a quarterly offering.

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