Although Facebook faced a wave of criticism over the last few months, its earnings haven’t been shaken. According to its latest earnings release for Q1 2018, the social media giant’s advertising revenue increased to $11.7 billion, up from $7.8 billion in Q1 2017.
Mobile ad revenues now represent a whopping 91% of the company’s ad revenue in Q1 2018. By comparison, in Q1 2017, mobile ad revenue represented 85% of the total.
Average daily active users increased 13% year-on-year to 1.45 billion in March 2018. Facebook noted that monthly active users had also increased 13% to a total 2.2 billion during the same time frame.
The results confirm a recent report by media company 4C Insights, which found that advertisers were continuing to spend their budgets on ads across the social media platform. Indeed, Facebook ad spend through the 4C platform increased 62% year-on-year with a 7% boost in the week of March 17th and 15% in the week of March 24th.
Aaron Goldman, CMO at 4C Insights commented:
“While recent headlines have called Facebook’s future into question, today’s earnings results clearly demonstrate that investors remain confident in the company. Advertisers also remain confident in the company, as 4C’s data shows that Facebook saw a 62% increase in ad spend through 4C year-over-year in Q1. While Facebook is attending to important privacy and user security issues in the near term, in the long term, brands will continue to focus budgets where they see performance.”
It appears that advertisers are more interested in returns than headlines, as Nick Fletcher, Vice President at Rakuten Marketing puts it.
“Facebook earnings are almost always a positive thing for the company and this latest round is no exception. All the dials are turning in the right way and we’re seeing just enough of the future to keep everyone excited about video and AI. More immediately, changes the company made to its news feed algorithm are only beginning to show their full impact. Over Q2 it will be interesting to see how Facebook markets the prospect of less time spent on the platform per user to its advertisers – it will boil down to really proving its role in an ever-widening path to purchase.”