Berlin – on its home page, Facebook promises to be free of charge. For always. However, this is based only on the money, because the users have to pay, of course – and with your data. Using Facebook, for example, to purposefully to be able to advertise. The success of the world’s largest social network is using this business model, it could prove in the third quarter again: Facebook tripled its profit to nearly 166 per cent to 2.38 billion dollars (2.1 billion euros) – and yet the stock declined after the announcement of the business figures on Wednesday sensitive. A the end of the success story is about predictable?
50 minutes using a Fan Facebook on average per day
Facebook owes its remarkably good quarterly numbers, especially the ever-increasing use of mobile devices such as Smartphones and Tablets. Overall, revenues climbed by 56 per cent to seven billion dollars. The proportion of this sum, the business Ads on mobile devices increased year on year from 78 to 84 percent. Because 90 percent of Facebook members use the network, in the meantime, via their mobile devices. A total of 1.79 billion people – around a quarter of the world’s population – are Facebook active, the are still 16 percent more than a year ago. 50 minutes per day surfing a Fan, on average, on Facebook and the 2012 bought-photo-platform Instagram, longer than on any other platform.
in the Future, there should be less advertising
This is likely to change quickly, if Facebook would ask its customers still more ads to show instead of news, photos and Videos from friends and pages, which follow their customers. The so far seemingly endless bubbling source of Revenue for advertising pushes in order to their limits, as well as Finance chief David Wehner said on Wednesday: In the coming year, the social network wanted to show, therefore, less advertising, resulting in the proceeds of “significantly” would fall, the group also plan larger investments, for example in the area of personnel. According to Wehner’s warning, the stock lost around seven percent. However, Facebook CEO Mark Zuckerberg is confident that its new strategy. And it’s called: “Video first”.
“will Soon tell the people first about a Text, but a Video”
Videos in the future, the core element of the Facebook to offers. “Soon will not tell the people first about a Text but about a Video,” Zuckerberg convinced. Even now, the number of users, the set in the case of Facebook Live Videos have recently quadrupled. The company wants to invest in the future in new camera Features, in the hope that users spend more time on the pages of the social network. This would allow Facebook to sell more video advertising, and thus a significant share of the lucrative television advertising market deduction, tire includes, according to the “Wall Street Journal” and the analysis service provided by eMarketer in the US alone, 70 billion dollars.
attack on Snapchat
Facebook, founded in 2004, is attacking the young, but fast-growing competitor called Snapchat. The 2011-launched Messaging service, whose specialty it is that the sent photos and Videos to destroy to call itself “”, is currently 150 million users, who watch every day, more than ten billion Video Clips every day two billion Videos are more than Facebook (as of 2015).
As before with Instagram and WhatsApp had tried Facebook with Snapchat, the dangerous incorporate at the end of the competition, first of all, for a billion, then three billion dollars. But Snapchat founder Evan Spiegel rejected and he is expected to today’s market, glad to be in view of the growing importance of the Video. Snapchat’s value is now estimated to be 19 billion dollars. In addition, the service is intensively used by the young members with About a third of Snapchat customers is between 18 and 24 years of age, two-thirds of the total back, but the time spent on Snapchat, it says in the “Wall Street Journal”. And the longer the dwell time, the more interested is the advertising industry.
Facebook does not need to expand, therefore, only be video offer, but also young users to bind to. Otherwise the lead could shrink to Snapchat, perhaps.