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Facebook Climbs to 2.5 Billion Monthly Active Users, But Rising Costs Impede Income Growth

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facebook climbs to 2 5 billion monthly active users but rising costs impede income growth

Facebook has published its Q4 2019 performance update, showing increases in both users and revenue, though costs associated with newer initiatives are also impeding overall growth. 

First off, on users – Facebook added 34 million daily active users, taking it to 1.66 billion DAU for the period.

Facebook Q4 2019 - Daily Active Users

Facebook added a million more users in the North American market, where it generates the majority of its revenue, while it saw the most significant growth, once again, in the Asia-Pacific market, adding 14 million more daily actives.

Overall, Facebook’s daily user growth momentum remains steady, and in line with ongoing growth patterns, though it will need to increase revenue per user in regions outside the US to boost its earnings.

Facebook Q4 2019 - ARPU

In terms of monthly actives, Facebook climbed to a new milestone of 2.5 billion MAU.

Facebook Q4 2019 - Monthly Active Users

This was also lead by the Asia Pacific region, where Facebook continues to reach new markets. It’ll take some time for Facebook to convert those newer users into more lucrative targets for advertisers, boosting its revenue potential, but with initiatives like Facebook Pay in India and Indonesia, combined with on-platform shopping, it’s already taking steps towards building the next major business eco-system. 

This time around, Facebook has also provided insights into overall usage across its ‘family of apps’ – or combined usage data across Facebook, Instagram, Messenger and WhatsApp.

Facebook Q4 2019 - Family of Apps

As explained by Facebook:

“Our Family metrics represent our estimates of the underlying number of unique people using one or more of Facebook, Instagram, Messenger, and/or WhatsApp (collectively, our “Family” of products). We define a DAP as a registered and logged-in user of one or more Family products who visited at least one of these products through a mobile device application or using a web or mobile browser on a given day.”

As you can see here, across its app ‘family”, Facebook now serves 2.26 billion people every day, a huge breadth of reach which far outpaces any other social network. 

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Reporting its app usage stats in combination seems like cheating, in some ways, using the company’s massive scale beyond its main platform, acquired through acquisition, to potentially mask growth slowdowns on any of its given tools. But then again, given the way Facebook’s ad platform works, that figure is relevant with respect to how many people you can reach through Facebook’s tools.

Facebook has also provided a monthly family of apps usage chart.

Facebook Q4 2019 - Family of Apps MAU

In terms of revenue, Facebook posted a massive $21 billion result for Q4, up 25% year-over-year.

Facebook Q4 2019 - Revenue

However, there are some concerning signs also. In among its financial data listings, you can see that the company’s costs and expenses have increased 51% year over year.

Facebook Q4 2019 - costs and expenses

Facebook’s efforts to clean-up its platform and improve content moderation have played a significant part in this – according to its disclosure listings, staff headcount has increased 26% year-over-year, and that’s likely to increase further in 2020 as it looks to better address key concerns in line with expansion. For example, that figure doesn’t count the rise in contractors that Facebook also uses for moderation, or the journalists it’s hiring as part of its renewed push into news content, or jobs to be created as it ramps up its efforts to focus on user privacy. Each of these elements will take more staff, which means more cost, and the mounting expenditure has slowed down Facebook’s overall income growth for Q4.

As a result, shares in Facebook were sold down in after-hours trading

Overall, the numbers are still good for Facebook, it’s still performing at an extremely high rate. But it’s ever-growing list of projects does come at a cost, and at least in this quarter, that cost impacted its overall performance more than it would like. 

But really, it’s this chart that’ll be a key focus. 

Facebook Q4 2019 - average revenue by region

Facebook is still heavily reliant on the North American region. 

In order to keep pushing forward on its focus projects, it needs to maximize revenue generation in other markets to capitalize on its massive reach. 

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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