Facebook made a lot more money from advertisements in the first quarter. Not only did the company sell more online ads for Facebook and Instagram, but the price that companies paid for an ad also rose sharply.
This led to a significant growth in revenue and a profit that just did not double, Facebook reported in its quarterly figures . Facebook’s total revenue was $ 26.2 billion, of which $ 25.4 billion came from advertising. In both cases this was an increase compared to last year of just under 50 percent. The price of ads rose by a third from the first three months of last year and Facebook posted 12 percent more advertising.
Ads in Instagram Stories
Facebook expects ad price to be the main driver of revenue growth for the rest of this year. That does not alter the fact that the company is also looking for more places to display advertisements. For example, it was recently announced that Instagram will place advertisements in Stories, the short films that can be seen for 24 hours before they disappear.
2.9 billion people
Bottom line, Facebook was left with $ 9.5 billion against $ 4.9 billion at the beginning of last year. The number of users of Facebook apps, in addition to Facebook and Instagram also chat app WhatsApp, increased. Every day, nearly 1.9 billion people used an app from Facebook’s stable in March, about 2.9 billion people every month.
Facebook also expects to spend a little more than it previously expected for this year. This is partly due to investments in personnel and new hardware for virtual reality, for example.
Less targeted ads after iOS update
The company is also again warning of difficulties with targeted advertising due to the new versions of iOS and iPadOS from Apple. Users must now explicitly grant companies permission to collect data through apps. It is expected that the majority of iPhone users will decline this through the new notifications .
Moving data from European users to US data centers may also be problematic. European regulators are considering whether this is allowed under the privacy rules.