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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Thursday, February 1, 2018

Facebook Flags Up New Strategy

Facebook reported a 47% year-on-year rise in revenue for the fourth quarter of 2017 to 12.97 billion US dollars, as the number of daily active users rose 14% to 1.4 billion.

However, Mark Zuckerberg, Facebook founder and CEO, warned that the social network is now looking to reduce the time people spend passively consuming entertainment: "In 2018, we're focused on making sure Facebook isn't just fun to use, but also good for people's well-being and for society. We're doing this by encouraging meaningful connections between people rather than passive consumption of content. Already last quarter, we made changes to show fewer viral videos to make sure people's time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term."

"The biggest impact on the focus on meaningful interactions, as Mark mentioned, will be in areas like passive video where from a business perspective, we monetize less on the time spent basis. So if you think about it in terms of things like posts, views in News Feed which drives impression growth, we think this will have a less of an impact," said Facebook's CFO David Wehner. "[Still] we have good opportunities to grow the business across both Facebook and Instagram in 2018. We continue to improve the effectiveness of our ads which helps drive ROI for advertisers and demand for our ad products. On the supply side, we expect we will be able to continue to grow ad impressions at a modest pace.... In 2018 we expect constant currency ad revenue growth rates to decelerate consistent with the trends we have seen over the past year." source: Facebook statements




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