FB Q4 2018 earnings saw mobile contribute 93% to ad rev

It now has more than 7 million active advertisers across all services.


MUMBAI: Last year saw Mark Zuckerberg-led social media giant Facebook entangled in a number of controversies, especially its privacy policies with the biggest being the Cambridge Analytica scandal. Despite all the negative press throughout the year, the FAANG company has reported strong financial gain in Q4 beating revenue and earnings per share estimations. Daily active users on the social media platform reached 1.52 billion led by growth in India, Indonesia and the Philippines.

Facebook reported 16.91 billion revenue against the estimate of 16.39 billion and $2.38 EPS against $2.18 consensus estimate. The key contributor to revenue definitely remains advertising with $16.64 billion. As the company reported, the year-on-year growth for total revenue as well as ad revenue was 30 per cent. North America, the domestic market of the platform alone brought in $8.25 billion. Notably, the ad revenue growth was strongest at 34 per cent in Asia-Pacific region.

The number of active users was also slightly higher than the expectations. Facebook reported 2.32 billion monthly active users and 1.52 billion daily active users with a 9 per cent year-on-year growth. Mobile advertising revenue represented approximately 93 per cent of advertising revenue for the fourth quarter of 2018, up from approximately 89 per cent of advertising revenue in the fourth quarter of 2017. The platform now has over 7 million active users across all its services.

“In Q4, the average price per ad decreased 2 per cent and the number of ad impressions served on our services increased 34 per cent. Impression growth was primarily driven by ads on Instagram – including both feed & stories – as well as Facebook mobile news feed. The year-over-year decline in average price per ad reflects an ongoing mix shift towards product surfaces and geographies that monetise at lower rates,” Facebook CFO David Wehner said in a statement.

Recently, Facebook has started focusing highly on stories across all its properties. Facebook COO Sheryl Sandberg said that 2 million advertisers are using stories to reach customers across their family of apps. In the last quarter, the company launched ads in messenger stories too.

As per the company presentation, daily active user grew in every region including in Europe. While monthly active users stayed flat in North America, it grew in every other region especially in Asia Pacific. The presentation says average revenue per user (ARPU) also grew to $7.37 billion from $6.09 billion in the third quarter.

The numbers clearly that indicate advertisers have not lost interest in the social media engine despite all the data privacy scandals. Even backlash from governments across the world didn't affect its value much for advertisers.

"Our community and business continue to grow," Facebook founder and CEO Mark Zuckerberg said. "We've fundamentally changed how we run our company to focus on the biggest social issues, and we're investing more to build new and inspiring ways for people to connect."

With an attempt to focus more on videos, Facebook Watch entered global markets. Zuckerberg expects 2019 to be the year where Watch becomes more mainstream. “There are now 400 million people who use it every month, and people spend on average over 20 minutes on Watch daily. This means we're finding ways for video to grow outside of news feed so it doesn't displace the social interactions that people primarily come to our services for,” he added.

Latest Reads

Sachin, Sehwag to open for India again

MUMBAI: Master Blaster Sachin Tendulkar, one of the most fearsome opening batsman of all time Virender Sehwag, the legendary West Indian Brian Lara, lethal Aussie speedster Bret Lee, one of Sri Lanka’s most stylish and dependable batsman of all time Tillakaratne Dilshan and the one and only, who...

iWorld Over The Top Services
Netflix’s mobile-only plan in India exceeds expectations; to help invest more in content

Netflix has bounced back in its Q3 2019 financials by posting revenue of $5.245 billion, which was almost in line with analysts’ prediction of $5.25 billion and was up by 31 per cent y-o-y. While the expected earnings per share were $1.04, Netflix boosted that by delivering $1.47. This is almost...

iWorld Over The Top Services
Ali Hussein promoted to CEO at Eros Now

MUMBAI: Ali Hussein has been elevated to the post of chief executive officer (CEO) at Eros Now, the digital arm of Eros International PLC. Hussein joined the organisation as chief operating officer in 2018. His experience spans over 15 years in the media entertainment and digital space. Ali has...

iWorld Over The Top Services
ZEE5 and Wework host discussion on changing landscape of the digital world

MUMBAI: Addressingthe rapidly evolving digital ecosystem in India, ZEE5 India and WeWork India today co-created an evening of discussions on the Changing Landscape of the Digital World.Tarun Katial, CEO – ZEE5 India, India’s fastest growing ConTech brand, and Ryan Bennett, CWeO of WeWork India,...

iWorld Over The Top Services
ShemarooMe’s platform design gets recognized at ‘India’s Best Design Awards 2019’

MUMBAI: Shemaroo’s video-streaming OTT platform- ShemarooMe's design has bagged India’s Best Design Project 2019 award at the recently concluded ‘India’s Best Design Awards 2019’ organized by Indi Pool for the work done by Fractal Ink Design Studio on its user interface and experience. The award is...

iWorld Over The Top Services
VICE Media Group taps Rohit Tugnait as Commercial Director, India

MUMBAI: VICE Media Group, the world’s largest independent youth media company, is pleased to announce the appointment of senior media executive Rohit Tugnait as Commercial Director for its India territory.  Tugnait will lead the commercial teams based in Mumbai, Bangalore and Delhi and will be...

iWorld Over The Top Services
Microscan launches Internet Service in Aurangabad

MUMBAI: Internet Service Provider Microscan Infocommtech has launched its services in Aurangabad. Microscan has joined hands with Elixir Telelinks to increase its reach and offer premium Internet Services in the city. This partnership plays to both partner’s individual strengths in which the...

iWorld Over The Top Services
ONEOTT Intertainment Limited wins TelecomLead.com Innovation Leaders award 2019

Mumbai: OneOTTIntertainment Limited (OIL), was awarded the 2019 Innovation leaders award by Telecomlead.com. OIL won this prestigious award for adopting innovative steps for expanding broadband connectivity to under connected population in urban locations, like –connectivity of 50 Hotspots in...

iWorld Over The Top Services
Prime Focus Technologies selected as event coverage partner for L’Oréal Professionnel’s Indian Hairdressing Awards 2018-19

MUMBAI: Prime Focus Technologies (PFT) announced that its video agency, PFT Brands was selected by L’Oréal Professionnel as the official event coverage partner for the prestigious Indian Hairdressing Awards (IHA) 2018-19. IHA was launched as a platform to recognize excellence in not only the art,...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories