In addition to a decrease in overall performance, some marketers reported a decrease in the performance of an equal audience.
Earnings reports released on Wednesday show that Facebook almost doubled its revenue in the first quarter of last year. Ad revenue increased 146% compared to 2020, while daily active users grew only 8%.
According to the CFO’s comments on the earnings report, the increase was largely driven by an increase in ad prices: “ We are very pleased with the strength of our ad-revenue growth in the first quarter of 2021, which is 30% per year. it’s income.
The following day, Twitter generated $ 1.04 billion in revenue in the first quarter, an increase of 28% over the previous year and 199 million daily users, losing only 200 million FactSet forecasts. Advertising revenue increased 32% year-over-year. Despite revenue growth, Twitter’s share fell 11% on Thursday. Twitter’s forecast for second-quarter revenue was slightly lower than expected.
What Facebook results mean to advertisers
COVID-19 affects the numbers of the reports. When analyzing the numbers, it is important to remember that the statistics for most companies may differ slightly this year, since the exclusion of COVID started in the first quarter of 2020 and remained so for the rest of the year. The numbers may be lower or stagnant in 2020, which may seem extraordinarily high (or even low) in 2021 depending on your business or customer.
COVID-19 accelerates digital advertising. After the initial controversy, when the COVID-19 blockades began and consumers found out what was going on at work and at home, digital advertising skyrocketed. Quarantining, more work, and training at home means even more time behind the scenes and more opportunities for advertisers to reach their audience. This also meant more competition for ad visibility and therefore higher prices.
What will change for Facebook? With the launch of iOS 14 and Apple’s IDFA, Apple users will have to agree to follow the cross-stitch pattern and advertisers will have two short lines of text to present their business to consumers. Facebook initially paid for the change, saying it would affect publishers’ earnings.
In an update to the announcement, Facebook confirms that it will acquire Apple’s SKADNetwork API, but will not implement Private Click Measurement (PCM) as it will not resolve the intricacies of the user’s journey. Instead, Facebook created AEM (AEM) to measure conversion events on iOS.
Price changes are also in line with privacy initiatives. “Immediately after the platform change, we saw increases in cost per click and cost per purchase in our customer base, regardless of the industry,” said Laurent Clawson, director of social media at Portent. In addition to a decrease in overall statistics, some SMMs report a decrease in the performance of peer groups that generally perform better. This was expected because a decrease in the allocation window reduces the data points Facebook needs to establish connections between users. “
In the future. “We expect overall revenue growth to remain stable year-over-year in the second quarter of 2021 or to accelerate slightly from the growth rate in the first quarter of 2021, as we see slower growth in the second quarter of 2020,” see what we will do. pandemic “was completed” in the announcement. The increase in advertising prices should reinforce this projection of increased sales.
“It is also up to us to consistently state that personalized ads are good for people and businesses and to better explain how they work so that people realize that personalized ads can provide privacy protection,” said Sheryl Sandberg, Facebook CEO, during the revenue. . to compose. the privacy changes that the technology will bring to users in relation to advertisers.
Possible diversification for Twitter
Although Twitter has repeatedly added bells and whistles to its main offering – Moments, Fleets, Spaces, Live Streaming – and increased the maximum number of characters, it hasn’t had time for product development or acquisitions. Like Facebook, it remains a major news source for many of its readers, but with less engagement and interaction than Facebook.
Could this explain the importance of Twitter in the clubhouse? Yuval Ben-Itzhak, president of the social media marketing platform Socialbakers, said that although this acquisition did not happen, Twitter seems to diversify, “maybe with something to worry about. One thing is for sure, innovation and new content formats. Always. Get involved. It doesn’t stray too far from the main use case and shares information in real-time via tweets, live streaming, and thanks to the launch of Spaces via speech. “
Ben-Itzhak was optimistic about Twitter’s first-quarter results. It is unsurprising that Twitter reported a good first quarter after the results of Snap, Google, and Facebook. It is also good to see that the number of users is still growing. “
He also noted that the involvement of people using the platform to discuss important events such as the pandemic and elections in the United States has also increased.
Why do we care?
If titans like Facebook (and Google) have been trading with consumers over the past three or five years about a better value (we get your data, you get a free and relevant experience on the web) – and more knowledge than you can prove it can. offer has. consumer data: we argue that we may not be in this situation. Until we know the impact of the Apple initiative on inventory value, it is difficult to extrapolate many of these good first-quarter results.
Twitter remains a major social media channel, even in the absence of former President Trump, and the rise in ad revenue is to applaud, but it still looks like it is starting a business. Maybe you’re looking for Instagram (it wasn’t Vine).