A 30% rise in average price per advertisement contributed to a surge in Facebook revenue in Q1.
The American social network Facebook Inc ( NASDAQ: FB) has recorded a 48% increase in its revenue for the 2021 first quarter (Q1) earnings report which does not include any Bitcoin investment. Earlier this month, the company announced the $26 billion revenue gain in an annual report. As a result of the earnings announcement, the stock of Facebook rose more than 7% in pre-market trading. Increased Advertising Price Helped Facebook boost Revenue by 48% in Q1 Increased advertising price contributed to a 30% increase in Facebook revenue in Q1.
Also, Facebook posted an increase of 12% in its ad number.
A 30% rise in average price per advertisement contributed to a surge in Facebook revenue in Q1. It would affect the company’s ability to personalize ads for iPhone and iPad users in the upcoming quarter, which might affect ad targeting. FB says the change in policy may result in a 50% contraction in the audience network ad business, which makes up less than 10% of the company's revenue. The company has prepared for the inevitable by launching more commercial products.
Facebook CEO Mark Zuckerberg claims the company boasts a monthly active user base of 1 billion who use their marketplace service to buy and sell goods. Zuckerberg pointed out that commerce has been growing in our services for some time now, but it became a lot more important since the pandemic accelerated a broader shift towards businesses moving online. The CEO of Facebook Mark Zuckerberg says the company boasts of 1 billion monthly active users who use the marketplace service to buy and sell goods. Zuckerberg explaining why commerce is a growing business said:
“Commerce have been growing in our services for a while, but it has become a lot more important as the pandemic has accelerated a broader shift towards businesses moving online.”
Speaking on the payment feature that FB plans to introduce, he stated that “building out payment technology, including the diem digital currency and Novi digital wallet, will be key to enabling more commerce on Facebook’s services.”
Facebook Posted No Bitcoin Investment
Despite rumors on its Bitcoin investment, social media giant Facebook mentioned no official confirmation of its Bitcoin holdings in its Q1 report. A screenshot of an email from someone at Lansdowne Partners first gave him the rumor. Milne posted a tweet that resulted in thousands of new stories. In the first quarter of 2012, Facebook launched Libra, a new digital currency for the global outbreak, but it later fell flat. Facebook anticipates a continuous increase in its revenue in the second quarter due to its global outbreak. Despite this, Facebook is expecting losses in revenue for its third and fourth quarters. The stock of Facebook has also soared 15.89% each quarter and 2.83% by the end of last month. Earlier, he said that more features would motivate users to post on Facebook more often. At press time, Facebook stock closed at $328.91, up 7.10% from its previous close.
Over the past year, the company has seen continuous growth. It has gained 50.02% in the last year, and 12.42 % has accompanied this growth during the current year.
The stock of Facebook has also soared 15.89% each quarter and 2.83% by the end of last month. Facebook's stock has increased by 3.57% over the past five days.
Ibukun Ogundare is a crypto/finance writer who writes every day on issues related to currencies and financial markets, using simple conversational words to reach a broad audience. Aside from writing, she likes watching movies, cooking, and exploring restaurants in the city of Lagos where she resides. It has climbed 50.02% in the last twelve months and advanced further by12.42 % in its year-to-date record. Facebook revenue surged by 30% in Q1 due to an increase in average price per advertisement. The American social network Facebook Inc. (NASDAQ: FB) reported an increase of 48% in its revenue for the first quarter of 2021, even when there were no Bitcoin investments.next Bitcoin News, Business News, Cryptocurrency news, Market News, News
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.