Facebook recently turned in another strong quarter.
Below is a summary of the most important parts of Facebook’s earnings call, including my analysis and what the future of Facebook marketing looks like for business:
- Facebook brought in $3.2 billion in total revenue over the last three months.
- Advertising revenue grew 64 percent year over year.
- There were 1 billion video views a day in September.
- Facebook has 8,300 employees, which is up 40 percent from last year.
- There are 1.5 million advertisers on Facebook.
- There was $766 million in free cash flow in the third quarter.
- Sixty-four percent of Facebook’s monthly active users log on every day.
- Each month, 1.35 billion people log on to Facebook.
- Each day, 703 million people use Facebook mobile.
- More than 1 billion people (1.12 billion) use Facebook mobile each month. That’s up 250 million since last year.
- Each month, 700 million people use Facebook Groups.
- WhatsApp has 600 million monthly active users, and is on track to reach 1 billion.
- Facebook users have created 3 billion links through Facebook’s App Links.
- The price per Facebook ad increased 247 percent due to higher quality.
- Total advertising impressions declined 56 percent over the last year.
- Payment volume from games decreased 2 percent year over year.
- Instagram has 200 million users.
- Instagram users spend, on average, 21 minutes per day on the app.
- Mobile is 66 percent of Facebook’s ad revenue, which is up from 49 percent this time last year.
- Users respond 20 percent faster on the Facebook Messenger app than the native Facebook Messenger.
- Facebook has 864 million daily active users, which is up from 829 million in the second quarter of 2014.
- There are 1 billion engagements every week between public figures and their Facebook fans.
What do these statistics tell you?
You must create relevant, high-quality content.
Businesses will die if they post generic content that isn’t relevant to their followers. As tools help consumers and businesses create content faster, competition for newsfeed exposure will only increase. Remember, the World Cup generated 10 billion interactions alone, and public figures averaged 1 billion interactions per day in September.
The businesses that continue to get high engagement will be those that invest in telling personalized stories and creating deep fan experiences. If you’re looking for creative engagement ideas, go here, and click the “show me more ideas” button in the bottom right.
You must make your Facebook ads more effective.
Facebook’s ad prices increased 247 percent this year, which means businesses must clearly identify their ideal customers if they want a positive return on investment.
A simple but highly effective strategy is to capture your Facebook fans’ email addresses, and retarget the addresses by uploading them into Facebook’s advertising platform. Use a Facebook contest platform like this one.
If you haven’t organically grown your page to at least 500 fans, this strategy won’t work. Focus on getting engagement first using a free tool like Heyo’s Timeline Contest Creator. Remember, 456 million users access Facebook via mobile each day. Make it easy for them to engage with your content on mobile devices.
What’s next for Facebook?
Facebook will spin out Groups into its own app within the next year. Mark Zuckerberg said the mobile app ecosystem likes apps that do one thing well. He also stated that, in Facebook’s effort to connect the world, reaching 1 billion users per app is a crucial milestone to begin monetization.
Facebook will not build its own payments platform. Speculation around Facebook’s creation of its own payments platform after poaching PayPal’s CEO is unfounded. Facebook will create a seamless payment experience by partnering with PayPal rather than build something itself. This is good news for PayPal, Stripe and other major players in the online payments business.
Facebook is on a mission to connect the world. Over the next three to 10 years, Facebook will focus on connecting and understanding the digital world and building the next generation computing platform. In the short term (three years), Facebook will grow and serve its existing 864 million daily users. Within five years, Facebook will focus on helping Messenger, WhatsApp, Facebook Search and Instagram reach 1 billion users.
In the long term (10 years), Facebook will focus on getting more people online via Internet.org, and creating the next great computing platform via Oculus Rift. Zuckerberg believes Oculus is well placed to shape the future of computing. He says, “Virtual and augmented reality will be part of the future of computing over the next 10 to 15 years.”
Do you think Facebook will make Groups a mobile app? Do you like the Facebook Messenger app? Did any of these figures surprise you?