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Facebook Q2 earnings preview: Online ad spending recovery set to drive sales acceleration

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Facebook (FB) is poised to report second-quarter earnings after market close on Wednesday, with the recovery across the internet advertising industry set to help lift the social media company’s results. 

Here are the main metrics Facebook is expected to post, compared to consensus estimates compiled by Bloomberg:

  • Revenue: $27.86 billion expected vs. $18.69 billion Y/Y 

  • Adjusted earnings per share: $3.53 expected vs. $2.29 Y/Y 

Much stronger-than-expected earnings results from peer ad-driven internet companies Snap (SNAP) and Twitter (TWTR) last week raised the bar for Facebook’s second-quarter results. Both the parent company of Snapchat and Twitter handily exceeded quarterly user and sales growth, pointing to solid user retention on the platforms even as in-person activities returned and vied for attention. Their sales and earnings beats suggested monetization of these users was also improving. 

But with more than 10 million active advertisers, Facebook remains a reigning leader in the online advertising space, and it has grown strongly over the course of the pandemic even as many businesses trimmed their marketing budgets. Revenue for the second quarter is expected to grow 49% over last year to nearly $27.9 billion, marking the fastest growth rate since early 2018. 

And that’s set to come even as user growth decelerates for the massive platform, with monthly active users across all Facebook properties including Instagram and WhatsApp expected to increase 11.2% over last year to 3.9 billion. That compares to a 13.8% growth rate in the same quarter last year, and a 15.4% rate during the first quarter.

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Bangkok Thailand - August 31 2017 Facebook App on iPhone with computer laptop background closeup male hand hold social network on smart device concept.

Bangkok Thailand – August 31 2017 Facebook App on iPhone with computer laptop background closeup male hand hold social network on smart device concept.

“We see three core catalysts in 2021: Rising Mobile advertising revenue, Video advertising and Instagram monetization,” Cowen analyst John Blackledge wrote in a note. “We expect Instagram to continue to increase its user count in 2021 and beyond, which should serve as a longer-term catalyst.”

For the second quarter, one of the key risk areas investors will be watching will be about how Facebook has navigated Apple’s recent ID for Advertisers (IDFA) software update. This update allows users to opt out of tracking in apps on iOS devices — a move which Facebook has suggested would decrease developers’ ability to monetize ads. Users have implemented the update over the past several months, though some analysts have suggested the impact to Facebook’s ad-centric business will be smaller than previously feared. 

“We acknowledge concerns around iOS14.5+ changes have ramped of late, and we expect it to be a key topic on the call, but we ultimately expect only modest impact to growth,” JPMorgan analyst Doug Anmuth wrote in a note. “Our checks suggest large platforms are best positioned to manage through IDFA/ATT [Ad Tracking Transparency], and we remain confident in FB’s ability to adapt. As we’ve seen in the past, FB’s large base of 10M+ advertisers creates high auction density, and even if select marketers reduce their spending on the platform, others will likely step into the auction.”

Updates on Facebook’s commerce ambitions will also be closely monitored, as the company continues to invest heavily in building out its payments and shopping experiences across each of its core Facebook, Instagram and WhatsApp platforms. Facebook CEO Mark Zuckerberg acknowledged the company’s commerce offerings like Facebook Marketplace and Instagram Shopping have become increasingly important as the pandemic accelerated the consumer shift to making purchases online, and said last quarter that building out a full-featured commerce platform across all the company’s services will be “a multiyear journey.” 

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“Shopping remains a big focus as FB’s ability to improve ad conversion and monetize organic posts with shopping capabilities could help offset tougher 2H21 revenue comps,” Bank of America analyst Justin Post said in a note. “Longer term, messaging remains a potentially large revenue drive and Facebook has seemingly been more constructive on AR/VR [augmented reality/virtual reality] traction, plus time spent on Instagram and IG Reels seems strong.” 

This post will be updated with the results of Facebook’s earnings results Wednesday after market close. Check back for updates.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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Facebook Messenger Is Launching a Split Payments Feature for Users to Quickly Share Expenses

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Facebook Messenger Is Launching a Split Payments Feature for Users to Quickly Share Expenses

Meta has announced the arrival of a new Split Payments feature in Facebook Messenger. This feature, as the name suggests, will let you calculate and split expenses with others right from Facebook Messenger. This feature essentially looks to bring an easier method to share the cost of bills and expenses — for example, splitting a dinner bill with friends. Using this new Split Payment feature, Facebook Messenger users will be able to split bills evenly or modify the contribution for each individual, including their own.

The company took to its blog post to announce the new Split Payment feature in Facebook Messenger. 9to5Mac reports that this new bill splitting feature is still in beta and will be exclusive to US users at first. The rollout will begin early next week. As mentioned, it will help users share the cost of bills, expenses, and payments. This feature is especially useful for those who share an apartment and need to split the monthly rent and other expenses with their mates. It could also come handy at a group dinner with many people.

With Split Payments, users can add the number of people the expense needs to be divided with and, by default, the amount entered will be divided in equal parts. A user can also modify each person’s contribution including their own. To use Split Payments, click the Get Started button in a group chat or the Payments Hub in Messenger. Users can modify the contribution in the Split Payments option and send a notification to all the users who need to make payments. After entering a personalised message and confirming your Facebook Pay details, the request will be sent and viewable in the group chat thread.

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Once someone has made the payment, you can mark their transaction as ‘completed’. The Split Payment feature will automatically take into account your share as well and calculate the amount owed accordingly.


For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

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Tasneem Akolawala is a Senior Reporter for Gadgets 360. Her reporting expertise encompasses smartphones, wearables, apps, social media, and the overall tech industry. She reports out of Mumbai, and also writes about the ups and downs in the Indian telecom sector. Tasneem can be reached on Twitter at @MuteRiot, and leads, tips, and releases can be sent to tasneema@ndtv.com.

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Facebook Owner Meta Launches New Platform, Safety Hub to Protect Women in India

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Meta (formerly Facebook) on Thursday announced a slew of steps to protect woman users on its platform, including the launch of StopNCII.org in India that aims to combat the spread of non-consensual intimate images (NCII).

Meta has also launched the Women’s Safety Hub, which will be available in Hindi and 11 other Indian languages, that will enable more women users in India to access information about tools and resources that can help them make the most of their social media experience, while staying safe online.

This initiative by Meta will ensure women do not face a language barrier in accessing information Karuna Nain, director (global safety policy) at Meta Platforms, told reporters here.

“Safety is an integral part of Meta’s commitment to building and offering a safe online experience across the platforms and over the years the company has introduced several industry leading initiatives to protect users online.

“Furthering our effort to bolster the safety of users, we are bringing in a number of initiatives to ensure online safety of women on our platforms,” she added.

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StopNCII.org is a platform that aims to combat the spread of non-consensual intimate images (NCII).

“It gives victims control. People can come to this platform proactively, hash their intimate videos and images, share their hashes back with the platform and participating companies,” Nain said.

She explained that the platform doesn’t receive any photos and videos, and instead what they get is the hash or unique digital fingerprint/unique identifier that tells the company that this is a known piece of content that is violating. “We can proactively keep a lookout for that content on our platforms and once it”s uploaded, our review team check what”s really going on and take appropriate action if it violates our policies,” she added.

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In partnership with UK Revenge Porn Helpline, StopNCII.org builds on Meta’s NCII Pilot, an emergency programme that allows potential victims to proactively hash their intimate images so they can”t be proliferated on its platforms.

The first-of-its-kind platform, has partnered with global organisations to support the victims of NCII. In India, the platform has partnered with organisations such as Social Media Matters, Centre for Social Research, and Red Dot Foundation.

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Nain added that the company is hopeful that this becomes an industrywide initiative, so that victims can just come to this one central place to get help and support and not have to go to each and every tech platform, one by one to get help and support.

Also, Bishakha Datta (executive editor of Point of View) and Jyoti Vadehra from Centre for Social Research are the first Indian members in Meta”s Global Women”s Safety Expert Advisors. The group comprises 12 other non-profit leaders, activists, and academic experts from different parts of the world and consults Meta in the development of new policies, products and programmes to better support women on its apps.

“We are confident that with our ever-growing safety measures, women will be able to enjoy a social experience which will enable them to learn, engage and grow without any challenges.

“India is an important market for us and bringing Bishakha and Jyoti onboard to our Women”s Safety Expert Advisory Group will go a long way in further enhancing our efforts to make our platforms safer for women in India,” Nain said.

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Facebook Adds New Trend Insights in Creator Studio, Which Could Help Shape Your Posting Strategy

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Facebook’s looking to provide more content insight within Creator Studio with the rollout of a new ‘Inspiration Hub’ element, which highlights trending content and hashtags within categories related to your business Page.

Facebook Inspiration Hub

As you can see in these screenshots, posted by social media expert Matt Navarra, when it becomes available to you, you’ll be able to access the new Inspiration Hub from the Home tab in Creator Studio.

At the right side of the screen, you can see the first of the new insights, with trending hashtags and videos from the last 24 hours, posted by Pages similar to yours, displayed above a ‘See more’ prompt.

When you tap through to the new hub, you’ll have a range of additional filters to check out trending content from across Facebook, including Page category, content type, region, and more.

Facebook Inspiration Hub

That could be hugely valuable in learning what Facebook users are responding to, and what people within your target market are engaging with in the app.

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The Hub also includes insights into trending hashtags, within your chosen timeframe, which may further assist in tapping into trending discussions.

Facebook Inspiration Hub

How valuable hashtags are on Facebook is still up for debate, but you’ll also note that you can filter the displayed results by platform, so you can additionally display Instagram hashtag trends as well, which could be very valuable in maximizing your reach.

Much of this type of info has been available within CrowdTangle, Facebook’s analytics platform for journalists, for some time, but not everyone can access CrowdTangle data, which could make this an even more valuable proposition for many marketers.

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Of course, overall performance really relates to your own creative, and thinking through the action that you want your audience to take when reading your posts. But in terms of detecting new content trends, including hashtag usage, caption length, videos versus image posts, and more, there’s a lot that could be gleaned from these tools and filters.

It’s a significant analytics addition – we’ve asked Facebook for more info on the rollout of the new option, and whether it’s already beyond test mode, etc. We’ll update this post if/when we hear back.

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