Archived entries for usage

Shifting to Mobile*

With its Q1 2014 earnings, Facebook demonstrated its continued structural shift to a mobile company. The company’s mobile active users for the first time crossed the 1B mark. Mobile active users are also growing faster than any other user base segment. This user base shift is reflected in Facebook’s changing revenue composition, bearing out the company’s past commitment to transition to a mobile-first company.1

Facebook’s user base now sits just below 1.28B MAUs (monthly active users). When we visualize Facebook’s usage composition we can see that its mobile user base is on track to reach or exceed its current total user base. We can also see that mobile-only usage is growing quickly, increasing 15% sequentially. We can conclude that Facebook is increasingly hired as a mobile platform.2 It is unsurprising, then, that Facebook’s revenue composition reflects this shift.

Facebook's usage composition: monthly active users (desktop + mobile), daily active users (desktop + mobile), mobile monthly active users, mobile-only monthly active users, Instagram, WhatsApp

Facebook saw $2.5B in revenue in the first quarter, a 72% year-over-year increase. The company’s payments business saw only a modest year-over-year increase.3 The bulk of its revenue growth accrued to its advertising business. And it is here that we see the consequence of the shift in Facebook’s user base composition. In the first quarter, Facebook’s mobile ad revenue was 59% of its total ad revenue, up from 30% over the year-ago quarter.

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Anticipating Facebook Usage in 2013

A new research paper released by Lee Rainie and his team at PewInternet, examined how users engage with Facebook, and how we might expect usage trends to evolve in 2013.1 The study indicates that 61% of users have at some point taken a voluntary break from the social network, and that 27% plan to reduce their time on Facebook this year. The research is instructive when trying to understand Facebook’s advertising revenue growth potential.

The study presents a few key findings about Facebook’s domestic user base growth potential. Foremost, the study gives us a sense of the fluidity of Facebook’s user base in the United States. PewInternet pegged the user base attrition rate at 20%, where users deleted an account they previously held. Concurrently, 8% of US online adults who do not currently have a Facebook account claimed to be interested in joining the social network.

PewInternet also presented findings that illustrate for how long Facebook’s users intended to utilize the social network in 2013. Among 18-29 year old users, only 1% intended to increase their current amount of site usage. 61% anticipated to maintain their current level of usage, while 38% intended to reduce their time spent on the site. Users in the 30-49 year old, and 50+ year old brackets indicated similar intentions.

Anticipated amount of time spent on Facebook in 2013

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Continuance - Facebook Analysis by . @jonmilani. Copyright © 2017. All rights reserved. Hosted by (mt) Media Temple.