Key Highlights
- Facebook’s net profit for the first quarter in 2021 is $ 9.5 with an increase of 6.5 percent in extended trading.
- Apple’s upgrade to the iPhone and iPad operating systems. It can permit users to choose applications to monitor their actions on their devices.
- Facebook anticipates that the iPhone privacy update would affect the ad business.
Facebook revenue increased unexpectedly
In the first quarter of 2021, total revenue, which largely consists of advertising revenues, increased 48 percent to $26.17 billion. An increase in digital ad spending during the pandemic as users shopped online, along with higher ad costs. Boosted Facebook sales by 48%. In extended trade, Facebook shares grew 6.5 percent to $326. Facebook’s monthly active users increased by 10% to 2.85 billion.Net profits for the first quarter in 2021 is $9.5 billion. In 2020 the net profit was $4.9 billion. These numbers can go down as Apple has started a new policy. It can affect the ad business.
Facebook e-commerce strategy
Mark Zuckerberg CEO of Facebook on a conference call detailing the company’s e-commerce policy. It is critical for the social media company that how they will expand their ad business after Apple’s revised privacy policy. It will make it more difficult to target advertisements. The company’s most successful e-commerce offering today is Marketplace. Marketplace allows users to purchase and sell products directly from Facebook. The marketplace currently has more than 1 billion monthly users, according to Zuckerberg. He said the company will focus on building e-commerce features to expand beyond its advertisement business.
Apple new changes in iPhone and iPad
Apple released iOS 14.5, an upgrade to the iPhone and iPad operating systems. Apple will allows users to choose which applications can monitor their actions on their smartphones. Apples’ new policy can harm the Facebook business and small businesses that rely on personalized ads. Basically when an ad runs on the page of Instagram and Facebook, and the consumer clicks on that ad and goes directly to the product website and buys the product. Click on the ad generates revenue both for a company and social media websites. Tracking consumer behavior has been important for Facebook. Tracking the behavior helps in determining how powerful targeted advertisements are. The firm has focused on a statistic known as view-through conversions. It calculates how many people saw an ad but did not actually click on it, and instead purchased anything similar to that ad.
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