SOCIAL
Meta Gets A Big Boost As X Falters (NASDAQ:META)
After the initial hype around Meta’s (NASDAQ:META) Threads in the initial phase, we have seen slower addition of new users. However, the recent controversies surrounding X, formerly called Twitter, will likely help Meta significantly. Elon Musk has used expletives while referring to advertisers who have canceled their advertising on X. This will increase the pace at which other advertisers will reconsider their decision to spend on ads within X. According to Reuters, big spenders like Disney and Comcast have increased spending on Instagram after dropping ads from X. It is very difficult to sustain a social network and it requires a more lowkey public profile by the top management. We could see X becoming more subscription based platform and most of the ad business moving to Meta. In a previous article, it was mentioned that Meta could deliver strong revenue growth as monetization in Reels improves.
Meta has made some changes in the placement of Threads which should allow more visibility for this platform. By the end of 2025, we could see greater customer engagement within Threads which should boost the overall engagement of Meta’s social network. The success of Meta in Threads and Reels makes a strong case for the long-term moat of the company. Any future social trends would likely be absorbed or replicated with Meta’s social platform giving the company a longer runway for growth. Despite the massive bull run in 2023, Meta is still trading at a discount compared to Apple (AAPL) and other big tech companies. There is significant long term potential within the company which should help the stock deliver good returns.
Headwinds for X helps Threads
The recent statements made by Elon Musk have hurt X platform significantly. The full repercussions are not yet visible but we should see a gradual move of ad dollars from Twitter to other platforms. At its peak in 2021, Twitter made a revenue of close to $5 billion and we could see these ad dollars move towards other digital media platforms. Meta is an ideal option for advertisers as it offers greater stability and the management has a long experience in dealing with controversial content.
Meta has also made some changes to Threads which increases the visibility of this platform for its userbase. This is a major incentive for advertisers who are looking for a more stable platform.
It should be noted that Meta has had its own issues with content moderation but the company continues to make significant improvements in removing toxic content from its platform. The growth of AI will also likely help Meta build better tools to remove content it deems unsuitable for its platform.
Figure: Improvement in ad impressions delivered by Meta in the recent quarter. Source: Meta Filings
Meta has already shown a major jump in ad impressions delivered on its platform in recent quarters. In the third quarter of 2023, Meta’s ad impressions increased by a staggering 31%. The average price per ad decreased by 6% YoY as more ads are shown on Reels which is monetized at a lower cost. However, over time we should see Meta benefit from higher ad impressions and deliver a better average price per ad.
Time spent on Meta’s platform
One of the key metrics for Meta is the time spent by users on its platform. Even if the monetization of the platform is lower than expected, a higher time spent on Meta’s network gives an indication of the future growth potential of the company. Very few social networks in the past have been able to gain significant traction in terms of customer engagement. It is easier to increase monetization compared to increasing customer traction.
Figure: Time spent by US adults on different social networks. Source: Insider Intelligence
In a recent report, eMarketer estimated the time spent by US adults on different social platforms. TikTok and Twitter were at 1st and 3rd place respectively with 53.8 minutes spent on TikTok and 34.1 minutes spent on Twitter daily.
Meta has already shown a good progress against TikTok with its Reels platform. The regulatory and legislative headwinds for TikTok will also push more customers toward Meta. The recent issues related to Twitter will help improve the time spent by users on Meta’s platform.
Meta has proved very efficient in monetizing its customer base. Higher time spent by customers on Meta’s platforms should improve the price per ad over the next few years as the company gains greater pricing leverage due to fewer alternatives.
Better moat for Meta
One of the key reasons why Meta has a lower valuation multiple compared to other tech majors like Apple and Microsoft (MSFT) is because of the quality of the earnings. Meta gets a bulk of its revenue from advertising which has a lower moat compared to platform owners like Apple. We saw a major headwind for Meta when Apple changed its privacy policies. This shows that Meta is still dependent on other platforms which reduces the future security of its revenue and earnings base.
A big success by Threads will likely change this narrative as the time spent on Meta platform will increase dramatically. It will also show that Meta can easily replicate other social platforms and gain a new revenue stream. This increases the long-term runway for the company and also reduces the volatility in revenue.
Impact on Meta’s stock
Meta has stock has jumped by over 150% YTD. This has given some investors doubt over whether the bullish rally will continue in the future. However, if we look at the forward PE multiple of META, it is still significantly undervalued. Meta’s forward PE multiple is 22 while Apple is 30 and Microsoft has a forward PE multiple of 33.
Figure: Comparison of META with Apple and Microsoft. Source: Ycharts
On the other hand, Meta is showing a faster YoY revenue growth. The forward revenue growth estimate of Meta has also increased significantly as the company continues to monetize Reels. It is likely that Threads will also improve the monetization trajectory of Meta in the next few quarters.
Wall Street could give Meta a much higher multiple if it sees a longer growth runway and a strong moat. The recent stumbles of Twitter will be a big boon for Meta. It is highly likely that a bulk of advertisers will shift from Twitter to Meta. Twitter will also have to change its business model to a subscription-first platform making it a niche platform. Higher time spent by users on Meta’s platform should allow the company to gain better price per ad. Meta stock remains a good bet when we look at the recent developments within the social media platforms and the current valuation of the company.
Investor Takeaway
Meta will gain a big boost as advertisers move away from Twitter. Recent actions of Elon Musk also show that Twitter would likely end up becoming a subscription-based platform. This should also increase the customer traction on Threads. Meta is already increasing the visibility of Threads within its platform. The company also reported a staggering 31% YoY growth in ad impressions delivered in the recent quarter. Greater monetization of Reels and Threads will place Meta in a good position to improve its revenue growth.
Meta stock is trading at 30% discount compared to Apple when we look at forward PE multiple. Apple’s YoY revenue growth has been negative while Meta is showing over 20% YoY growth. This trend can continue for the next few quarters as Meta continues to increase ads on Reels and also uses AI to improve the price per ad through better targeting.
SOCIAL
12 Proven Methods to Make Money Blogging in 2024
This is a contributed article.
The world of blogging continues to thrive in 2024, offering a compelling avenue for creative minds to share their knowledge, build an audience, and even turn their passion into profit. Whether you’re a seasoned blogger or just starting, there are numerous effective strategies to monetize your blog and achieve financial success. Here, we delve into 12 proven methods to make money blogging in 2024:
1. Embrace Niche Expertise:
Standing out in the vast blogosphere requires focus. Carving a niche allows you to cater to a specific audience with targeted content. This not only builds a loyal following but also positions you as an authority in your chosen field. Whether it’s gardening techniques, travel hacking tips, or the intricacies of cryptocurrency, delve deep into a subject you’re passionate and knowledgeable about. Targeted audiences are more receptive to monetization efforts, making them ideal for success.
2. Content is King (and Queen):
High-quality content remains the cornerstone of any successful blog. In 2024, readers crave informative, engaging, and well-written content that solves their problems, answers their questions, or entertains them. Invest time in crafting valuable blog posts, articles, or videos that resonate with your target audience.
- Focus on evergreen content: Create content that remains relevant for a long time, attracting consistent traffic and boosting your earning potential.
- Incorporate multimedia: Spice up your content with captivating images, infographics, or even videos to enhance reader engagement and improve SEO.
- Maintain consistency: Develop a regular publishing schedule to build anticipation and keep your audience coming back for more.
3. The Power of SEO:
Search Engine Optimization (SEO) ensures your blog ranks high in search engine results for relevant keywords. This increases organic traffic, the lifeblood of any monetization strategy.
- Keyword research: Use keyword research tools to identify terms your target audience searches for. Strategically incorporate these keywords into your content naturally.
- Technical SEO: Optimize your blog’s loading speed, mobile responsiveness, and overall technical aspects to improve search engine ranking.
- Backlink building: Encourage other websites to link back to your content, boosting your blog’s authority in the eyes of search engines.
4. Monetization Magic: Affiliate Marketing
Affiliate marketing allows you to earn commissions by promoting other companies’ products or services. When a reader clicks on your affiliate link and makes a purchase, you get a commission.
- Choose relevant affiliates: Promote products or services that align with your niche and resonate with your audience.
- Transparency is key: Disclose your affiliate relationships clearly to your readers and build trust.
- Integrate strategically: Don’t just bombard readers with links. Weave affiliate promotions naturally into your content, highlighting the value proposition.
5. Display Advertising: A Classic Approach
Display advertising involves placing banner ads, text ads, or other visual elements on your blog. When a reader clicks on an ad, you earn revenue.
- Choose reputable ad networks: Partner with established ad networks that offer competitive rates and relevant ads for your audience.
- Strategic ad placement: Place ads thoughtfully, avoiding an overwhelming experience for readers.
- Track your performance: Monitor ad clicks and conversions to measure the effectiveness of your ad placements and optimize for better results.
6. Offer Premium Content:
Providing exclusive, in-depth content behind a paywall can generate additional income. This could be premium blog posts, ebooks, online courses, or webinars.
- Deliver exceptional value: Ensure your premium content offers significant value that justifies the price tag.
- Multiple pricing options: Consider offering tiered subscription plans to cater to different audience needs and budgets.
- Promote effectively: Highlight the benefits of your premium content and encourage readers to subscribe.
7. Coaching and Consulting:
Leverage your expertise by offering coaching or consulting services related to your niche. Readers who find your content valuable may be interested in personalized guidance.
- Position yourself as an expert: Showcase your qualifications, experience, and client testimonials to build trust and establish your credibility.
- Offer free consultations: Provide a limited free consultation to potential clients, allowing them to experience your expertise firsthand.
- Develop clear packages: Outline different coaching or consulting packages with varying time commitments and pricing structures.
8. The Power of Community: Online Events and Webinars
Host online events or webinars related to your niche. These events offer valuable content while also providing an opportunity to promote other monetization avenues.
- Interactive and engaging: Structure your online events to be interactive with polls, Q&A sessions, or live chats. Click here to learn more about image marketing with Q&A sessions and live chats.
9. Embrace the Power of Email Marketing:
Building an email list allows you to foster stronger relationships with your audience and promote your content and offerings directly.
- Offer valuable incentives: Encourage readers to subscribe by offering exclusive content, discounts, or early access to new products.
- Segmentation is key: Segment your email list based on reader interests to send targeted campaigns that resonate more effectively.
- Regular communication: Maintain consistent communication with your subscribers through engaging newsletters or updates.
10. Sell Your Own Products:
Take your expertise to the next level by creating and selling your own products. This could be physical merchandise, digital downloads, or even printables related to your niche.
- Identify audience needs: Develop products that address the specific needs and desires of your target audience.
- High-quality offerings: Invest in creating high-quality products that offer exceptional value and user experience.
- Utilize multiple platforms: Sell your products through your blog, online marketplaces, or even social media platforms.
11. Sponsorships and Brand Collaborations:
Partner with brands or businesses relevant to your niche for sponsored content or collaborations. This can be a lucrative way to leverage your audience and generate income.
- Maintain editorial control: While working with sponsors, ensure you retain editorial control to maintain your blog’s authenticity and audience trust.
- Disclosures are essential: Clearly disclose sponsored content to readers, upholding transparency and ethical practices.
- Align with your niche: Partner with brands that complement your content and resonate with your audience.
12. Freelancing and Paid Writing Opportunities:
Your blog can serve as a springboard for freelance writing opportunities. Showcase your writing skills and expertise through your blog content, attracting potential clients.
- Target relevant publications: Identify online publications, websites, or magazines related to your niche and pitch your writing services.
- High-quality samples: Include high-quality blog posts from your site as writing samples when pitching to potential clients.
- Develop strong writing skills: Continuously hone your writing skills and stay updated on current trends in your niche to deliver exceptional work.
Conclusion:
Building a successful blog that generates income requires dedication, strategic planning, and high-quality content. In today’s digital age, there are numerous opportunities to make money online through blogging. By utilizing a combination of methods such as affiliate marketing, sponsored content, and selling digital products or services, you can leverage your blog’s potential and achieve financial success.
Remember, consistency in posting, engaging with your audience, and staying adaptable to trends are key to thriving in the ever-evolving blogosphere. Embrace new strategies, refine your approaches, and always keep your readers at the forefront of your content creation journey. With dedication and the right approach, your blog has the potential to become a valuable source of income and a platform for sharing your knowledge and passion with the world, making money online while doing what you love.
Image Credit: DepositPhotos
SOCIAL
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.
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.
SOCIAL
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.”Â
“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.
“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.
-
WORDPRESS3 days ago
WordPress biz Automattic details WP Engine deal demands • The Register
-
SEARCHENGINES6 days ago
Daily Search Forum Recap: September 30, 2024
-
SEARCHENGINES7 days ago
Google Volatility With Gains & Losses, Updated Web Spam Policies, Cache Gone & More Search News
-
SEO7 days ago
6 Things You Can Do to Compete With Big Sites
-
SEARCHENGINES4 days ago
Daily Search Forum Recap: October 1, 2024
-
SEO6 days ago
An In-Depth Guide For Businesses
-
AFFILIATE MARKETING6 days ago
Nvidia CEO Jensen Huang Praises Nuclear Energy to Power AI
-
AFFILIATE MARKETING7 days ago
This Minimalist Lamp Lets You Pick From 16 Million+ Lighting Colors for Maximum Productivity