Fb Posts Robust Income End result, Although Energetic Utilization Development is Slowing in Key Markets
Facebook just keeps going. The platform reported increases in both users and revenue in the first quarter of 2021, while also maintaining significant momentum in the Other Income category, mainly driven by sales of Oculus VR and Portal Smart Speakers.
First off, about users – Facebook’s monthly active users (MAU) increased 10% year over year to 2.85 billion.
As you can see here, Facebook again saw the greatest growth in Asia Pacific, which it did for the last six reporting periods.
Facebook is particularly popular in Indonesia is now Facebook third largest user marketbehind India and the USA. Indonesian Facebook usage is off 115 million active ingredients in 2017 to 140 million today, while India continues to see solid adoption as more of the nation gradually goes online.
Both regions represent a significant opportunity for The Social Network, which is now investing in improved connectivity to attract even more people in these countries to its apps. Like India, Indonesia is still developing its digital ecosystem, which gives Facebook the perfect opportunity to become the primary binding tool and provide new tools and processes 275 million + Indonesian citizens When looking for new avenues online, this is where Facebook’s increasing investment in e-commerce and digital payments comes into play, offering more opportunities to enable more functionality in users’ everyday processes.
In this way, Facebook could become a transformative utility in these emerging markets. This is the company’s biggest growth opportunity right now.
In terms of daily activities, Facebook is now up 1.88 billion, up 8% year over year, and is nearing the next major milestone for the app.
You can see that the number of daily active users as a percentage of total monthly activity has remained constant. This shows that despite various controversies and concerns, users are still logging into Facebook at the same speed as they always have.
In many ways, Facebook has become a daily ritual – everyone logs in in the morning to see what their friends and family have posted and stays up to date on birthdays, events, announcements, etc. With that in mind, that would also be interesting to see how much time people spend on Facebook and how that has changed over time – because while people may still be logging in, I suspect they are now spending more time on other apps like Instagram, YouTube and TikTok.
Facebook doesn’t provide that insight – but it’s interesting to note that despite mass bans on extremist groups, despite concerns about how Facebook is skewing people’s opinions, despite growing numbers of people swearing to delete the app, it clearly isn’t happening. At least not significant enough to affect the company’s total number – although growth in the US and Canada regions has remained largely unchanged and Europe has now also reached a plateau in DAU numbers.
The main concern on this front is that in the North American region, Facebook is still generating most of its money, followed by Europe.
While the Asia-Pacific region presents a future opportunity, the slowdown in these markets could scare investors.
Of course, at some point Facebook usage will have to level off as adoption peaks, but the growth numbers here could also reflect growing concerns about the platform’s potential negative impact.
As you can also see, ARPU numbers are increasing overall (year-over-year), which also helped Facebook generate strong overall results for the quarter – a 48% year-over-year increase.
According to Facebook:
“We’re excited about the strong growth in our advertising revenue in the first quarter of 2021, driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads served. We expect that Ad revenue growth as 2021 continues to be driven primarily by price. “
This isn’t good news for advertisers as the cost of Facebook ads is increasing. And if the impact of Apple’s IDFA update goes as expected, it will also reduce the effectiveness of Facebook advertising, which could further increase advertising costs.
The risk for Facebook is that this could also lead advertisers to look at other platforms. On the other hand, at least all iOS apps will be equally affected. With that in mind, given Android’s popularity in regions outside of western countries, Facebook is likely in a good position to weather the long-term impact. Still, if the full IDFA impact hits, Facebook is likely to see some short-term success.
On the other hand, Facebook has the reach. Take a look at this usage overview for the “family of apps”.
The social monster is getting closer and closer to 3 billion users every day. For the context The population of the whole world is there 7.7 billionand half of them still have no access to the internet. That means that most of the 3.85 billion who access Facebook every day is really mind-boggling worth when more are added.
There are some additional caveats within this equation, of course, regarding people with multiple accounts and how Facebook tracks them. Even so, it’s crazy to think about how ubiquitous Facebook has become in modern society.
The numbers also highlight how Facebook can have such a huge impact on how people think and act, especially in a political sense.
And then, as I mentioned earlier, there is:
Facebook continues to invest heavily in its “Other” revenue stream, primarily through higher sales of its Oculus VR headsets and portal home speakers.
It’s still only part of Facebook’s total revenue, but Facebook is also increasingly becoming a hardware company, set to move ahead with the launch of its first smart glasses later this year.
Mark Zuckerberg, CEO of Facebook, noted that growth in his official statement on the results:
“We had a strong quarter as we’ve helped people stay connected and businesses grow. We’ll continue to invest aggressively in the years ahead to deliver new and meaningful experiences, including in newer areas like augmented and virtual reality , Commerce and the Creator Economy. “”
AR and VR are increasingly becoming key elements in Facebook’s future, while increased investment in e-commerce and the creator economy, as Zuckerberg notes, will help keep users coming back and keeping Facebook’s apps as vital utilities in everyday life .
Which really is where Facebook is now placed. Sure, other, newer, trending apps could get more hype – and so Facebook will keep following them. However, the platform’s position in the modern interactive process is undeniable – and as the statistics show, Facebook is an important connector in many ways.
This reach, this capacity will result in advertisers coming back, Facebook staying connected and the platform leading to the next shifts in usage.
Fear it, run away from it, Facebook still maintains it. And like Thanos, it seems increasingly “inevitable” in terms of its constant presence.