Facebook continued it’s revenue growth in the third quarter of 2017 as it recorded a total revenue of USD 10.3 billion, up 47 per cent or 45 per cent on a constant currency basis. However, the earnings calls was marked with Mark Zuckerberg, Facebook founder and CEO talking about the platform being abused by Russian trolls. He said, “Our community continues to grow and our business is doing well. But none of that matters if our services are used in ways that don’t bring people closer together. We’re serious about preventing abuse on our platforms. We’re investing so much in security that it will impact our profitability. Protecting our community is more important than maximizing our profits.”
Over 1.37 billion people use Facebook daily, up 16 per cent compared to Q3 last year. Monthly active users reached 2.07 billion as of September 30, 2017, an increase of 16% year-over-year. Facebook Messenger now has more than 20 million businesses communicating with customers.
“Instagram also hit a big milestone this quarter, now with 500 million daily actives. And we saw good results in the business, where total revenue grew 47 per cent year-over year and we had our first quarter with more than USD 10 billion in revenue,” Mr Zuckerberg added.
Q3 total ad revenue was USD 10.1 billion, up 49 per cent. Ad revenue growth was led by Europe and APAC with 56 per cent and 54 per cent growth respectively. Mobile ad revenue was USD 8.9 billion, up 57 per cent. Mobile advertising revenue represented approximately 88% of advertising revenue for the third quarter of 2017, up from approximately 84 per cent of advertising revenue in the third quarter of 2016.
Video remained a growth driver as Mr Zuckerberg reiterated its importance, “Over the next three years, the biggest trend in our products will be the growth of video. This goes both for sharing, where we’ve seen Stories in Instagram and Status in WhatsApp grow very quickly, each with more than 300 million daily actives, and also for consuming video content. We recently launched the Watch tab, where you can discover shows, follow creators, connect with people watching an episode, and join groups with people with similar interests to build the community. We’ve found that Live videos generate 10x the number of interactions and comments as other videos.”
Facebook now has over six million active advertisers, and Instagram recently crossed the 2 million advertisers mark.
Sheryl Sandberg, COO, Facebook said, “Video is exploding, and mobile video advertising is a big opportunity. Until recently, ads were only eligible for Ad Breaks if they also ran in News Feed. In Q3, we gave advertisers the option to run ads in videos alone. We’re seeing good early results, with >70 per cent of ad breaks up to 15 seconds in length on Facebook and Audience Network viewed to completion, most with the sound on.”