3 or more things marketers should know about Facebook’s Q3 earnings

In addition reporting lower-than-expected revenue development in the third-quarter, Fb CEO Mark Zuckerberg was uncharacteristically blunt about many of the challenges dealing with the company. It was an effort to set Walls Street expectations, but there are takeaways for marketers, too.

Here are some of the highlights:

Usage is up … within emerging markets. Facebook’ s reach in North America plus Europe has essentially hit the saturation point. The question has been exactly what daily active users (DAUs) would certainly look like in the wake of a stable stream of negative headlines regarding social media generally and Facebook particularly. A Pew study in Sept found a marked decline within user engagement on Facebook.

Facebook reported DAU development in its least profitable markets — those outside the U. S. plus Canada and Europe. Daily utilization in Europe has dropped somewhat for the second consecutive quarter.

Facebook Watch plus IGTV challenges.   Facebook’ s video platform Watch keeps growing, on the back of a general within video content, but Zuckerberg mentioned it is well behind YouTube. (Though that may in part have been for regulators’ benefit. See, we do have competitors! )

Zuckerberg stated Watch has grown “ about 3x in the last few months in the U. S i9000. alone” and that the company has a “ good sense” of how to make IGTV work well.

From a monetization standpoint, however , these channels aren’ t performing like Newsfeed, up to now. Zuckerberg noted that “ movie monetizes significantly less well per minute compared to people interacting in feeds. ” Still, he said the company is certainly committed to investing in video. “ Movie is a critical part of the future. It’ s what our community desires as long as we can make it social, and i believe will end up being a large part of the business as well. ”

Stories & messaging monetization slower going.   In the shift from Facebook’ s origins, Zuckerberg acknowledged that people don’ big t always want to share publicly. “ People feel more comfortable being by themselves when they know their content is only going to be seen by a smaller group so when their content won’ t stay forever, ” he said. Which means Facebook will need to monetize those locations — namely Stories and messages.

Facebook rolled out ads within Stories earlier this particular quarter.   Zuckerberg said that the particular “ effort to shift Fb from News Feed first in order to Stories first hasn’ t already been as smooth as I had wished. ”

He cautioned investors that although he thinks strongly in a “ feed in addition Stories” world over a “ feed-only world, ” the Stories advertisements aren’ t driving much income yet. “ From a business viewpoint, feeds will drive the majority of our own growth over the next couple of years, a minimum of until Stories become an even larger driver. ”

Over the messaging front, Zuckerberg said, a lot more photos, videos and links are now being shared on WhatsApp and Messenger than on social networks.

“ By making businesses pay to deliver messages, we believe it will get them to more selective with what they send out. Payments will make each of these services a lot more useful for people and businesses, despite the fact that we don’ t plan to make money from it directly, ” Zuckerberg mentioned.

Why this matters. Watch, IGTV, and Stories are all part of Facebook’ s plan to keep users involved on its platforms — plus engaging with ads. As it is designed to shift from a newsfeed-driven company, marketers will also need to adapt plus understand how these formats differ from newsfeed formats both in terms of innovative needs and performance expectations.


About The Author

Robin the boy wonder Kurzer started her career like a daily newspaper reporter in Milford, Connecticut. She then made the girl mark on the advertising and marketing world in Chicago at companies such as Tribal DDB and Razorfish, creating award-winning work for many big companies. For the past seven years, she’ h worked as a freelance writer plus communications professional across a variety of company sectors.

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