Rumours of Facebook's demise have been greatly exaggerated

July 28, 2017

Bloggers have taken to the web to document a supposed cooling in the temperature of Facebook users in 2017, while Princeton University researchers even went as far to say that 80 per cent of users would abandon the platform this year.

How wrong they have all been proven to be.

Expectations of Facebook's second quarter stock price have been blown out of the water, with the social media giant recording shares at $1.32 - blitzing the $1.13 predictions.

Revenue has soared 45 per cent compared to the same quarter last year and the user base is growing by 17 per cent year-on-year.

How did Wall Street react to this? With a long, appreciative slow clap.

RBC Capital Markets' Mark Mahaney declared: "FB might well be the best growth story in tech."


Why is Facebook reaching new heights? And how can business cash in?

Simple, video content is raking in the users. Mobile technology has now reached the point that there are almost 17 million smartphones in Australia, which is getting closer to matching our total population.

Global Investment Banking Firm Jefferies analyst Brian Fitzgerald said the connection between businesses and consumers through video was the reason Facebook was defying predictions that advertising revenue had already peaked.

"Digital video consumption continues to take share from nearly every other form of media consumption," he said.

"We think there is upside to both ARPU (average revenue per user) and MAUs (monthly active users) driven by increasing engagement across all platforms and the opportunity to grow its digital video advertising business."


Which, of course, is great news for business. By smashing expectations, Facebook has shown that video is king when it comes to engaging with your consumer base through advertising on social media.





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