Facebook reported mixed results for Q3 2018, falling short of revenue estimates, but presented better-than-expected profits.
The social network’s revenue grew 33% year-on-year to $13.73 billion. Analysts had predicted a rise to $13.78 billion.
Mobile ad revenue now represents 92% of ad revenue for the third quarter of 2018 compared to 88% in Q3 2017.
According to a statement, Facebook plans to roll out new products for its Stories and bolster its video and private messaging features and ad options.
“Our community and business continue to grow quickly, and now more than 2 billion people use at least one of our services every day,” said Mark Zuckerberg, CEO of Facebook. “We’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”
User counts fell short of Wall Street expectations. However, Facebook still ended Q3 with 2.27 billion monthly users up from 2.2 billion in Q2. Daily active users were reported at 1.49 billion, up from 1.47 billion in Q2 2018.
It appears that users in Europe are abandoning the social network with daily active users falling from 279 million to 278 million.
Meanwhile, Marin Software research found that Instagram was now receiving 16% of Facebook’s total ad spend, whilst the company’s News Feed accounted for 80%. Instagram Stories was the most popular ad format and accounted for 25% of all ads on the photo app.
CPCs are also higher on Instagram ($0.82) than they are on Facebook ($0.19) now.
“This year alone, Instagram jumped from five to 15% of our customers’ Facebook spend,” said Wesley MacLaggan, SVP of Marketing at Marin. “We expect this trend to continue, especially with recent news of Instagram enhancing its eCommerce features. With the rise of Amazon and the success of Google Shopping Ads, eCommerce has quickly emerged as a third pillar of digital advertising, and it’s clear that Facebook is looking to get in on the action.”