Facebook The Media Company If It Looks Like A Duck
20,000 Foot View: Facebook beat financial analyst estimates with its 2016 earnings but announced that ad revenues would likely slow in 2017, due to the digital ad market feeling the pinch of advertiser budgets, which are lagging behind the shift in user behaviour. Facebook’s stock fell by but Plan B is already in motion: to become a media company. Facebook delayed this move as long as it possibly could, showing little enthusiasm for getting bogged down with content licences while it was able to drive audience growth and engagement by piggybacking on other people’s content. That strategy has run its course. Facebook is now about to start looking and behaving much more like a media company, but in doing so it will rewrite the rulebook on what a media company is.
- Facebook’s combined of Messenger, WhatsApp and Instagram it a share of the messaging app marketplace
- Facebook’s messaging strategy is shifting audience time platforms that Facebook is currently able to monetize
- At the of 2014, Facebook Messenger MAUs just of all Facebook users, by the end of 2016 share had risen to – saturation
- Facebook has strategic imperatives: get users more on its core platform, and new revenue streams for them of consumers watch videos on Facebook, representing of Facebook’s weekly active users
- Facebook has a one trick pony – Facebook’s 2015 revenues were from
- To offset ad revenue, Facebook needs to a suite of new revenue the sum of which will transforming itself into a media
- The billion and PC gaming industries are standout addressable segments for Facebook
- Filters, live TV, video and music are other areas in which Facebook explore monetization
- Convincing Wall that its long-term strategy justifies near-term struggle is almost as for Facebook as executing the itself
Companies and services mentioned in this report: Alphabet, Amazon, Apple, Facebook, Instagram, Messenger, Musical.ly, Pandora, Spotify, WhatsApp, YouTube.