- Even after a number of allegations in data breaches and security, Facebook’s growth doesn’t seem to stop.
- Facebook is growing not only in terms of users, but their ads game is getting strong day by day.
According to audience insights a tool used by advertisers on Facebook, the social media platform witnessed an increase in the median number of Facebook ads from July to January. Not only in the US, but in other global markets, users increased their click on Facebook ads.
A number of median comments and likes remained the same but clicks have gone up. Following are the monthly median engagement levels between 18th July 2018 – 16th Jan 2020:
- Posted comments remained at 8.
- Posts liked remained at 13.
- Ads clicked rose from 17 to 19
For the 4th quarter, Wall Street analyst project revenue of approx. $20.88 (23% more a year ago). However, profit per share is down 29%, $2.52 per share.
“Facebook continues to be a landing place for its core demographic of older millennial — boomers, and despite all the negative publicity, the platform has remained a key meeting place for people and will remain a ripe locale for advertisers to spend money,” – Daniel Newman, principal analyst at Futurum Research, which focuses on digital technology.
So, apart from Facebook’s many features that attract users on its platform, Facebook ads have silently created a whole new hype inside the company.
While small video platform Tik-Tok is gaining momentum in terms of users as well as in terms of advertising, audience insights brought good news to Facebook.
But it’s not that, that any ad run on Facebook gets all the limelight. Facebook restricts several ads plus, until and unless an ad is not according to the terms of this social media platform, it will not be running on Facebook.
With more than 2.8 monthly users, just imagine the potential of any ad which has a global audience as a target audience! The social media platform offers several features to advertisers so that their Facebook ads are worth clicking.
Wedbush analyst Michael Pachter likewise expects Facebook’s results to top the Street consensus. In a recent research note, he writes that he expects the company
“to continue its rapid growth overseas and to increase monetization of underpenetrated Instagram, WhatsApp, and Messenger.”
“Third-party ad agency checks suggest holiday ad spend remained healthy, and Facebook likely saw another quarter of robust advertising growth, at current levels, Facebook shares appear extremely inexpensive relative to growth, particularly in comparison to peers, and earnings growth should be sufficient to drive FB shares to healthy near- and long-term returns.” – Stifel Financial analyst John Egbert
Conclusion:
While there is competition from other platforms, the growth of Facebook seems to be unstoppable. The number of users growing on the platform is directly related to Facebook ads.
Irrespective of the social media being into the limelight for some wrong reasons, from a user’s point of view, they still find this platform worth spending time on. Also, according to them, if they see an ad running on Facebook, they might click on it because they feel it’s safe.
While Facebook ads are away from the world of spamming, fake pages and phishing, they are effective partially because of correct targeting and partially because of a cool ad copy.
Facebook is planning to integrate WhatsApp and Instagram. To comment on this is still early, but it seems like Facebook (combined with WhatsApp and Instagram) has some big plans.
