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Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

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Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#101

Post by flexie »

So Facebook makes less than $3.7 per user per quarter or some $15 per user per year.

Don't anyone find it amazing how little money they make per user (and still have a good business)?

The article doesn't say how much time the users spend on FB, but they say that users spend 100 million hours monthly on watching videos. If we assume that's 50% of the time spent on FB, users spend 200 million *365 = 73 billion hours yearly on FB or in average a little less than 50 hours per user. For $15.

So roughly speaking, Facebook makes $1 for every 3 hours a user spends.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#102

Post by hmate9 »

flexie wrote: post #101

So Facebook makes less than $3.7 per user per quarter or some $15 per user per year. Don't anyone find it amazing how little money they make per user (and still have a good business)? The article doesn't say how much time the users spend on FB, but they say that users spend 100 million hours monthly on watching videos. If we assume that's 50% of the time spent on FB, users spend 200 million *365 = 73 billion hours ye…

$1 every 3 hours is pretty good no?

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#103

Post by thenomad »

nl wrote: post #99
shostack wrote: post #76

Earlier quoted context omitted.

Can you share any details of the study you are involved in?

No details (embargoes etc), but the short version is that videos ads work.

Interesting. Is that true even if you're only able to consider last-touch rather than the whole picture? (For example, if you're a performance marketer working on commission for leads or sales.)

I've not yet seen spectacular results for video, speaking as someone in the above category (some of the time) but my hunch has long been it can be very effective.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#104

Post by mikekchar »

adventured wrote: post #92
AJ007 wrote: post #20

Earlier quoted context omitted.

You are wrong on #1. The biggest con was Facebook selling those "likes" to your competitors. #2 addressed elsewhere #3 YouTube started through copyright violations and continues to benefit from copyrighted content today (if the rightsholders do not try to enforce.)

If the rights holders do not want to enforce take-downs on their content (eg because they're getting promotional value from it or otherwise), then it's not in any way wrong to benefit from said copyrighted content. In fact it's smart and appropriate to use copyrighted content in that case. Just because something is copyrighted doesn't mean it's inherently or by default illegal or improper to use without permission -…

Just want to say that it is default illegal to infringe copyright. It is a civil offence in most countries, but it is still illegal. You can be sued and "But you never complained" is not a valid defence. This is true of any country that signed the Berne convention. In many countries if you infringe copyright for profit, it becomes a criminal offence and you can actually go to jail.

I am not a lawyer. This is not legal advice. Read the copyright law in your area. You will undoubtedly be very surprised at how wrong you are.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#105

Post by TheLogothete »

frik wrote: post #87

How many of the 1.59B users are still active, at least once a week? Not just have the app installed and receive just notifications but actually open the app or website? Facebook is mainly used by 30+ woman's nowadays, to share their baby, cat and dog photos. And is a huge ghost town with much of the profiles haven't been updated or have posts for multiple years. It's like MySpace in 2010. Facebook (and to some extend…

If you bothered to read the article, you would know the answer to your question. All of those 1.59B users login to facebook at least once a month, which are reported separetly from the Messenger users, who are 800M.

Imagine how the rest of your musings sound.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#106

Post by ssharp »

downandout wrote: post #96
physcab wrote: post #24

Here's the thing that most people don't know unless they are in the "industry": * The gaming industry is most likely driving a lot of this growth. I'm sure Machine Zone and Supercell are doing between $5M - $10M a day on FB alone. * FB is re-defining attribution. They want to bring in big brands and are re-defining last-click to "Multi-touch". Their end game ofcourse is to say the reason why you decided to make a tri…

> FB still is the only reliable source for advanced targeting of ads. This has massive impact on ROI for performance marketers. A few years ago, a report came out saying that approximately 6% of Facebook advertisers were actually seeing a positive ROI. A more recent survey of small businesses [1] showed that 41% felt they received some positive ROI. These numbers suggest that Facebook advertisers are likely losing bi…

A lot depends on how well you can model attribution. If you're measuring last-click, you're going to see a wildly different story than if you can measure the impact the measure of a impression, mid-stream click, etc. I'd guess most small businesses are not invested in developing stronger attribution models, so looking at Facebook spending vs. something like paid search, as apples-to-apples, is going to make Facebook look worse than it likely is. That's not to say advertisers aren't chasing metrics other than ROI, but just calculating an accurate ROI can be something beyond the scope of many.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#107

Post by coldcode »

Apple makes more profit than all of Facebook's revenue times 3. Yet Apple stock goes down and Facebook, which has a price/revenue ratio that makes no sense whatsoever, goes up. Apple makes products people generally love, and Facebook makes money from ad and ad like things which people hate (and eventually will block). I really don't understand the stock market at all.

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#108

Post by pinkrooftop »

coldcode wrote: post #107

Apple makes more profit than all of Facebook's revenue times 3. Yet Apple stock goes down and Facebook, which has a price/revenue ratio that makes no sense whatsoever, goes up. Apple makes products people generally love, and Facebook makes money from ad and ad like things which people hate (and eventually will block). I really don't understand the stock market at all.

Apple also provides a dividend

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#109

Post by pawelk »

ChuckMcM wrote: post #2

It will be interesting to see how much of that revenue came at Google's expense.

The biggest advertising agency holding WPP spent $1 billion with Facebook and $4 billion with Google in 2015 [1]. Both figures are up compared to 2014, by 56% on FB and by 38% on Google, so the growth of advertising budgets on Facebook was faster, but Google still dominated.

What's impressive is that WPP alone brings in around 5-6% of both internet giants revenue. I wonder how the few multinational advertising giants (WPP, Omnicom, Publicis etc) compare to a long tail of local agencies and individual advertisers.

[1] http://www.businessinsider.com/wpp-google-and-facebook-spend...

Re: Facebook Climbs to 1.59B Users, Beats Q4 Estimates with $5.8B Revenue

#110

Post by uptown »

jgh wrote: post #61
spikels wrote: post #43

Earlier quoted context omitted.

Pretty sure gaming is NOT where Facebook's revenue growth is coming from. Almost all the growth has been coming from mobile advertising for a couple years now.

who spends the money on most of those ads?

Game companies.
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