Netimperative
Netimperative
  • Home
  • Ads
  • Content
  • Mobile
  • E-commerce
  • Social
  • Regulation
  • Video
  • Viral
Menu
  • Apple
  • Amazon
  • Facebook
  • Google
  • twitter
  • WhatsApp
  • YouTube

Facebook profits surge 56% despite drop in usage

February 1, 2018
Facebook has beaten analysts’ estimates for quarterly revenue on and forecast similar growth ahead, as businesses used its digital ads tools despite a brand boycott and the economic upheaval of the coronavirus pandemic.

Facebook users are spending 5% less time on the social network, but then firm still managed to post reported better than expected results for the last three months of 2017.

The social network made major changes to its News Feed in January, including cutting down on branded viral videos, but the drop in usage came before these changes were implemented.

Time spent on the social network fell by about 5%, or roughly 50 million hours a day, in the last three months of 2017.

Facebook founder Mark Zuckerberg said it had been a “hard” year for the social media giant. Shares in the company fell 5% in after-hours trading.

Full-year profits rose 56% to $15.9bn and revenues climbed 47% to $40.7bn while fourth quarter revenues and underlying earnings beat analysts’ expectations.

But a 14% rise in the number of daily active users to 1.4 billion in December compared to a year before fell slightly short of Wall Street expectations.

Mr Zuckerberg said: “2017 was a strong year for Facebook, but it was also a hard one.”

Facebook had warned earlier this month that tweaks to its news feed feature would result in a hit to user engagement and it has also been affected by changes to the way it shows videos.

Zuckerberg said: “Last quarter, we made changes to show fewer viral videos to make sure people’s time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50m hours every day.”

He argued that it is “encouraging meaningful connections between people rather than passive consumption of content” and that by doing so it will be stronger in the long term.

The changes will also see it highlight “trustworthy” news in its news feed following claims that Russians and others spread false reports on the site, particularly during the 2016 presidential election.

Mark Zuckerberg: Facebook changes reduced time spent on site by 50 million hours a day in Q4 from CNBC.

Ads, Content, Mobile, Social, Video content, Facebook, media

Archives

Tags

advertising agencies Amazon analytics Android Apple apps Australia BBC brands Brazil broadband China Christmas comScore content digital marketing ecommerce email Entertainment Europe Facebook France games Germany global Google government images infographic local marketing media Microsoft music Privacy retail Search security smartphones technology Twitter UK video YouTube

Recent Posts

  • Top six Valentine’s Day ads for 2022
  • 2021 Halloween: digital marketing campaigns we loved this year
  • Empowering employees; the critical link between EX and CX
  • Investing in in-app social features is a must in a world that is crying out to be connected
  • QR codes, Gen Z and the future of OOH

Copyright © 2025 Netimperative.

Magazine WordPress Theme by themehall.com

We use cookies to improve the website and your experience. We’ll assume you’re okay with this, but you’re welcome to opt-out
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT