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Facebook embraces video as Q2 results shine
Michelle Clancy
| 30 July 2016
Facebook has announced $2 billion in net income for the second quarter of the year, double what it was just six months ago.
facebook liveMonthly active users increased to 1.71 billion, with 1.1 billion using Facebook daily, and video has become a big part of the picture.
"Our community and business had another good quarter," said Mark Zuckerberg, Facebook founder and CEO, during the earnings call.
"We're particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services."
Facebook has put a lot of its eggs into its live-streaming initiative, dubbed, appropriately, Facebook Live. While ostensibly a tool for everyday users, the company has also beefed up the service in the last few months to be appropriate for broadcasters and enterprises.
Sky, for instance, is using the platform in a few different ways. Sky News, Sky Sports and Soccer AM Facebook pages have a total of 14 million followers. In the past three months, Sky said it had seen almost 370 million video views, and in January, Sky News was one of the most watched Facebook video publishers in the world. In the coming months, across news and sports, Sky plans on live broadcasting “a great deal of content” on Facebook Live, providing a unique behind the scenes look at some major sporting events and breaking news stories.
Another piece of this is becoming a destination for original professional content; Facebook is paying 140 media companies and celebrities over $50 million to create that. The social network has also earmarked $2 million to lure various YouTube stars to the Facebook Live platform. The content is meant to be short-form and snackable — and ripe for new kinds of advertising formats. Already, Q2 advertising growth in North America accelerated to 69% by an incremental $1.25 billion — the biggest aggregate quarterly expansion ever.
“Despite facing a bar that has been steadily raised higher, Facebook handily exceeded expectations across all metrics,” the MoffetNathanson team said in an investor note. “The beat wasn't one of those US market manufactured ones caused by negative whispers driving revisions lower ahead of the quarter. Facebook's Q2 was impressive in terms of organic ad growth and operating leverage.”
The firm added: “Given that we still expect a strong Q2 US national TV market, the growth is coming from a variety of clients and budgets that don't yet include TV. FB investors should be happy and media investors should be concerned.”
Michelle Clancy
| 30 July 2016
Facebook has announced $2 billion in net income for the second quarter of the year, double what it was just six months ago.
facebook liveMonthly active users increased to 1.71 billion, with 1.1 billion using Facebook daily, and video has become a big part of the picture.
"Our community and business had another good quarter," said Mark Zuckerberg, Facebook founder and CEO, during the earnings call.
"We're particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services."
Facebook has put a lot of its eggs into its live-streaming initiative, dubbed, appropriately, Facebook Live. While ostensibly a tool for everyday users, the company has also beefed up the service in the last few months to be appropriate for broadcasters and enterprises.
Sky, for instance, is using the platform in a few different ways. Sky News, Sky Sports and Soccer AM Facebook pages have a total of 14 million followers. In the past three months, Sky said it had seen almost 370 million video views, and in January, Sky News was one of the most watched Facebook video publishers in the world. In the coming months, across news and sports, Sky plans on live broadcasting “a great deal of content” on Facebook Live, providing a unique behind the scenes look at some major sporting events and breaking news stories.
Another piece of this is becoming a destination for original professional content; Facebook is paying 140 media companies and celebrities over $50 million to create that. The social network has also earmarked $2 million to lure various YouTube stars to the Facebook Live platform. The content is meant to be short-form and snackable — and ripe for new kinds of advertising formats. Already, Q2 advertising growth in North America accelerated to 69% by an incremental $1.25 billion — the biggest aggregate quarterly expansion ever.
“Despite facing a bar that has been steadily raised higher, Facebook handily exceeded expectations across all metrics,” the MoffetNathanson team said in an investor note. “The beat wasn't one of those US market manufactured ones caused by negative whispers driving revisions lower ahead of the quarter. Facebook's Q2 was impressive in terms of organic ad growth and operating leverage.”
The firm added: “Given that we still expect a strong Q2 US national TV market, the growth is coming from a variety of clients and budgets that don't yet include TV. FB investors should be happy and media investors should be concerned.”
