- Paid content creators and marketers will have a 2-year reprieve from Facebook’s annual deduction.
- Facebook’s monthly users have increased from 100 million in Q3 2008 to 2.85 billion in Q1 2021.
- Facebook plans to improve the use of AR/VR to improve customer-brand connections.
Facebook (FB) shares gained 1.89% on June 7, 2020, from the previous day as it traded to a high of $336.58 (+6.23 points). The media giant’s stock grew after Zuckerberg announced that Facebook will not deduct revenues from paid content marketers until 2023. Creators getting this 2-year reprieve include organizers of online events, marketers with badges, and fan (paid) subscriptions.
Technology companies like Apple (AAPL) require content creators to pay the company an annual fee of $19.99. Apple is also using the 30/15 model, where it takes 30% of their revenue in the first year and then 15% in the subsequent years. In Q1 2021, Twitter (TWTR) announced its intention to add 123 million users by 2024. Among its attraction ingredients was the super-follow option, a monetization scheme for brands and content creators. The company intended to charge a monthly fee of $4.99.
Q1 2021 saw Facebook’s revenue jump 48% (year-on-year) at $26.171 billion. In addition, advertising revenue jumped 146% (YoY), handling the bulk of the income at $25.439 billion. With monthly active users (MAUs) totaling 2.85 billion as of Q1 2021, Facebook is undoubtedly the largest social media network globally. That number has been surging with no downtime since Q3 2008.
FB’s monthly users
Facebook’s monthly users have increased from 100 million in Q3 2008 to 2.85 billion in Q1 2021. However, the company has diversified its portfolio to include WhatsApp, Instagram, and Messenger. The company indicated that at least 3.45 billion had used at least one of these products proving that investors will see an increase in the MAUs into 2022. The user deficit stands at 21.05%, with the company looking to add more content creators before 2023.
Facebook is looking to use augmented & virtual reality (AR/VR) to improve connection opportunities between consumers. In its Q2 2021 report, FB explained that content related to AR/VR soared 44%, with membership groups growing by 74%. The number of customers messaging brands or sellers on FB’s marketplace using AR/VR products increased 75% YoY. The company expects that the global expenditure in this relation will increase six times by 2024, with 75% of social-media entrepreneurs using AR by 2023.
The use of AR/VR will help to improve the response time by business leaders since connections will only require the use of smartphones and headsets. According to media analysis, approximately 40% of consumers (globally) using social media expect businesses or brands to respond to them within an hour. Up to 79% of users expect the brands to respond or finish the transaction within 24 hours.
The industrial response rate on social media
The response rate among many industries is barely 30% on social media due to poor engagement between brands and customers.
As of 2018, 86.3% of marketers in the US used Facebook to sell their products. Advertisement revenue was expected to increase by 167% from $12.2 billion (in 2016) to $32.6 billion in 2020. The company is still on track to achieve this target since the number of online-based orders during the pandemic has surged 208%.
Facebook Chart Analysis
Facebook hit high buying activity above $333, with the 14-day RSI at 66.54. The ultimate oscillator also supports strong buying action at 53.39.