Despite the negative headlines and reserving $3 billion for the FTC, Facebook divulged in its Q1 earnings report that it’s doing just fine. With 4.3 billion people on the internet around the world, 2.7 billion people are using the Facebook family of apps each month and 2.1 billion are using it at least once every day.
Facebook’s Vision Looking Ahead
- Private interactions: Be able to have simple, intimate spaces where the user can have complete confidence that what they say and do is private.
- Encryption: Secure private communications and end-to-end encryption, which prevents anyone — including Facebook — from seeing what users share.
- Reducing permanence: Facebook won’t keep messages or stories for longer than necessary.
- Interoperability: Users will be able to use the Facebook family of apps to reach other users and communicate across Facebook networks easily and securely.
- Secure data storage: Facebook will not store sensitive data in countries where it might be improperly accessed because of weak rule of law or governments that can forcibly get access to user data.
Stories on a Rise
- 3 million advertisers using Stories Ads to reach customers across Instagram, Facebook, and Messenger
- Launched checkout on Instagram, so when people find a product they love in a post or story, they can buy it without leaving the app
- Facebook Marketplace is showing initial success with millions on interactions between buyers and sellers every day.
- Launched Collaborative Ads, which give brands that don’t have a direct-to-consumer channel a way to run e-commerce campaigns with retailers.
- Facebook plans to build out ways for people to pay merchants through its messaging apps.
Remarks that caught our attention
“The privacy-focused vision that Zuck shared makes me incredibly excited about everything that’s coming ahead. That said, the current business model does not work in a privacy-first environment. Besides messaging, I envision Groups becoming an important product for consumers. There’s very little known in terms of how Facebook will think about monetization here. Just like all products, I suspect Facebook will wait until there’s massive adoption before starting the monetization process (usually 200M+ monthly active users or MAUs).“Faheem Siddiqi, Founder and CEO of SocialWithin.
Thinking mobile first is becoming increasingly obvious. Facebook generated $13.9 billion in mobile ad revenue, making it 93 percent of all ad revenue. With the exception of Facebook, all platforms in the Facebook family of apps predominantly generate revenue on mobile.
Sheryl Sandberg, COO of Facebook mentioned, “In Q1, our top 100 advertisers represented less than 20 percent of our total ad revenue, which means our advertiser base is more diverse compared to the same period last year.”
“I suspect the 20 percent number to fluctuate soon. Facebook can have sustainable long term growth with a diverse advertiser network and platform,”Faheem Siddiqi, Founder and CEO of SocialWithin.
To learn more about Facebook as it pivots, SocialWithin was invited to Facebook’s annual F8 developer conference.
Takeaways from F8
He admitted “it’s going to take time” to rebuild trust with users after a public outcry over data collection and privacy lapses. “I know that we don’t exactly have the strongest reputation on privacy right now, to put it lightly. But I’m committed to doing this well, and to start a new chapter for our products,” he said.
Zuck shared Facebook’s 6 step approach to achieving a privacy-focused future:
- Private Interaction
- Reduced performance
- Secure Data Storage
In the spirit of “doing this well” and achieving a private future, Facebook is making major changes for the first time in 5 years.
Here are Facebook’s top priorities for this year:
- Facebook redesign
- The simpler, faster, more immersive design called FB5
- Updating the Facebook icon
- Instagram redesign
- New Camera
- Hiding like count
- Exploration to combat bullying
- Launching Portal internationally
- Launching Oculus Quest and Rift S
- Private messaging
- Using Messenger and Whatsapp as a “digital living room”
- Expanding payments to other countries after seeing success in India
- Adding more focus to stories on all apps
- Launching Facebook dating and Secret Crush
- Making it possible to network with Meet New Friends