Facebook ad revenues jump 10% year-on-year as user engagement jumped 13%

Anne Freier | August 4, 2020

App Business

Despite a record drop in overall ad sales during the second quarter 2020 due to the coronavirus crisis, social media giant Facebook recorded an advertising revenue rise of 10% to $18.3 billion from 2019.

The increase was driven to more consumers engaging with the platform during lockdowns.

However, the rise was still smaller than the 17% seen during the first quarter of the year as demand for ads fell.

The quarter marked a particularly positive result for user growth with monthly active users jumped 13% to 3.14 billion across its platforms including Instagram, Messenger and WhatsApp. Daily active users jumped 15% to 2.5 billion.

However, average revenues per user dropped 1.6% to $6.10 in light of the pandemic.

Overall, the company profits were nearly twice as high compared to 2019 at $5.18 billion, not factoring in the steep Federal Trade Commission fines Facebook forked out last year.

“Facebook’s strong Q2 performance shows how indispensable its family of apps has become. Revenue growth of 11% year-on-year is truly remarkable against the backdrop of a global pandemic and concerns over divisive content. Usage across Facebook is steadily rising with 3.14 billion people now using one of its apps each month,” said  Aaron Goldman, Chief Marketing Officer at 4C.

“From a marketer perspective, despite some brands participating in the Stop Hate for Profit boycott, overall adoption for Facebook remains high. We’re seeing lower pricing and higher ad click-through rates which is a winning equation for brands. Looking ahead, we expect innovations like Facebook Shops to bring further commercial intent and conversion to the platform. This will, in turn, will drive even better return on investment for marketers as part of an omnichannel approach.”

A brief outlook at Q3 results, reveal that a recent advertiser boycott of Facebook may not be having a significant effect with revenues increasing 10% during the first three weeks of July 2020.

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