Facebook continues to reap in profits as advertisers are drawn into their advertising platform more than ever. Since more than one quarter of the population of the world now use the site each month, it’s no surprise that Facebook is relying on monetisation to grow further and increase profits.
Facebook’s Revenue Increase
Facebook have stated that:
• Profits have climbed 71% to $3.9bn in the April to June period, with Mark Zuckerberg labelling the first two financial quarters of the year as “good”.
• The earning’s report states that their mobile advertising grew by over 50% in this April to June quarter, which was a big factor into this increase in revenue (from advertising).
These figures show that Facebook will not cease to stop growing and adding to their year-on-year revenue, which is currently increasing at 45% each year.
Advertising within Messenger
Looking to the future, Facebook is exploring ways to monetise it’s two other social platforms, WhatsApp and Instagram. However, a perhaps more significant area that is being worked on is advertising through Facebook’s Messenger. This is something businesses want, with Facebook Product manager Eddie Zhang stating that businesses had been saying that they were very excited about the use of messenger to reach customers and boost sales.
Over the coming months we’ll no doubt see more of this advertising within Messenger itself, but how will everyday users react. Is advertising within Messenger itself a bad thing for users and striving too far away from the ‘social’ aspect of Messenger?
Where do they go from here?
Along with pushing advertising across their other social media platforms and Messenger, Facebook looks to further revenues from new services. This will be done through a rumoured video service that will include original, scripted shows. This will allow for a different range of businesses, primarily ones built on user-generated content, to profit from advertising and in-turn, allow Facebook to also profit further. Zuckerberg has stated that video is a key factor in Facebook’s growth for the next two to three years.
To read more on this head to: http://www.bbc.co.uk/news/business-40732036 and https://uk.reuters.com/article/uk-facebook-results-idUKKBN1AB2SD