Facebook's Q2 results are literally stellar, thanks to mobile ads and the ability to attract new users
Facebook's Q2 results are literally stellar, thanks to the solid mobile advertising (mobile ads) and the ability to attract new users from its applications. At closed markets the latest prices showed a + 8%, following the announcement of Q2 2016 earnings, which make it the "top of the class" among social networks.
The company, last April, had shown its growth despite massive investments in long-term projects: virtual reality, Artificial Intelligence, expansion of Internet connections on a global scale, hiring thousands of new employees.The annuities that referred to the period up to 30 June, took off by 59%, equal to 6.4 billion, Incredible data if you consider how positive they were already a year ago, when the 4.04 billion were announced in the same period. The ads for mobile they accounted for 84% of total sales in the last quarter, despite the increase in their tariffs which could have compromised their rents. According to eMarketer estimates, Facebook's earnings will reach 23.31 billion this year, which will become the largest advertising provider after Google. Also according to eMarketer, every single Facebook user will generate USD 15.83 to the company.
The company has registered a profit of $ 2.1 billion (71 cents per share), beating analyst estimates that predicted 57 cents: 186% over the previous year's earnings of $ 719 million (25 cents per share).
The success of Facebook advertisements lies in having them integrated so as to give continuity to the posts, without interrupting the use of the contents, but it will be appropriate to take into account a greater necessary balance between the posts of the contacts or the pages of our interest, compared to those imposed to guarantee the free service. There are currently 3 million monthly active advertisers, at the end of 2015 the average was 2.5 million. Among the boom of advertisers expected by the Menlo Park company, the American presidential elections and the Rio Olympics stand out, the winning horses on which they will bet.
Videos are increasingly a source of income, and live tools have been made available to all users since the beginning of this year. The hosting of live videos not for a simple matter to manage, it is necessary to take into account sensitive contents, those that could cause controversies, ethical ones that in case of live could not be appropriate for a broadcast worldwide, or even just the adequacy of the timetable . The technologies necessary to guarantee the best results and performances are in continuous development, because it would be foolish not to protect and make the best of the hen from the golden eggs of the Zuckerberg company. Videolive, as well as Snapchat, Instagram, Twitter and YouTube will make around 70 billion.
Comparing the hours of video viewing by users it went from 8 billion hours a day last year, to 100 billion in January of this year.Facebook's momentum is based on the advertising business according to forecasts Debra Aho Williamson, the most important analyst of eMarketer as far as branding is concerned, advertising videos are increasing their popularity. Products such as Dynamic ads, which let advertisers upload the various product catalogs to Facebook and selectively appear to relevant targets, is demonstrating the absolute effectiveness of such a method for inducing purchases.
Instagram, as well as virtual reality, will generate significant earnings for Facebook, who owns it. Videos up to 60 seconds were introduced on the Instagram platform for both advertising and users. In 2016, IG is expected to sell mobile advertising for 1.3 billion in the US and 1.53 billion worldwide. Even Facebook messaging (Messenger, WhatsApp) will bring home 10 billion by 2020, making more than 10% of the company's total earnings.
A former PayPal executive, David Marcus, which joined the company a couple of years ago, is evolving Messenger features. New features are implementing the app, such as voice messages and video calls, peer-to-peer payments, games, animated GIFs and stickers, such as floating hearts all over the screen as soon as they are sent. More recently, business performance has improved. 18,000 bots have been launched and more than 23,000 developers have used Facebook's bot engines. There is also a service, the concierge tool M, available in beta in an area of the Bay Area of San Francisco, which helps users to complete tasks and assignments, such as: buying clothing, restaurant reservations, flower orders and recovery of information. The growth of active users has been impactful, 15% year after year until reaching 1.71 billion a year ago. Daily active users have increased by 17%, and are 1.13 billion. Snapchat tries to compete with Facebook, but has an average of very young users. Messenger and WhatsApp settle on the billion active monthly users, Instagram has 500 million of them. Facebook Groups has reached one billion users. Every day, 1 billion posts are created on the entire platform. In terms of expenses, Facebook reported their growth of 33%, equal to 3.69 billion dollars.
Zuckerberg Our community and our business have seen a new excellent quarter, we are really pleased with the performance of our videos, considering how much they represent the core of our activities.