Facebook: Users spent 50M fewer hours per day at end of '17

Facebook's latest'fixes at a glance

"Now, as I made clear announcing these changes, I expect the time people spend on Facebook and some measure of engagement will go down as a result, but I also expect the amount we actually interact with each other to go up over time", he added.

While it is hard to pin down exactly what led to the lower engagement numbers, they may be due to the company's shift away from news and general saturation in the social media marketplace, said Kevin Krewell, principal analyst at Tirias Research.

Though the conference call certainly helped provide some interesting insight into Facebook's business, it primarily played the important role of easing concerns surrounding the company's recent News Feed changes.

Sandberg said she was optimistic about potential revenue from ads on "stories" on Facebook and Instagram, while Chief Financial Officer David Wehner said the average price per ad increased 43 percent in quarter.

Both of these developments could be attributed to a number of factors over the last 12 months, including the ongoing struggle to combat "fake news" accounts, the volatile news cycle, and a general sense of exhaustion among those who previously found their communities on Facebook enjoyable spaces to hang out in. Mobile advertising revenue represented 89 percent of net advertising revenue.

The drop in the number of users "suggests that Facebook usage has reached a saturation point in its first and most lucrative market, and could foretell similar usage drops around the world", CNBC's Matt Rosoff wrote. "It's full screen, it's authentic, it's very engaging".

"When you see a photo from a friend in News Feed, that's not just content that makes you smile or laugh".

Meaningful social interactions are the new buzzwords for Facebook executives. In the third quarter, the growth in daily users was the slowest ever. Facebook said that profit in the final three months of a year ago climbed 20 percent to $4.26 billion as both ad revenue and ranks of members grew.

"We don't see this is an ongoing trend, but we do anticipate that DAU in this region may fluctuate given the relatively high penetration level", Wehmer said during the call.

"In 2018, we're focused on making sure Facebook isn't just fun to use, but also good for people's well-being and for society". By making sure that news needs to be verified, and putting less emphasis on viral information, it could also mean that people will find the platform less exciting, and will cause them to spend less time in the platform.

"In other words, better quality engagement and better ability to target ads".

Our thanks to investment research platform Seeking Alpha for the transcriptions from Facebook's January 31 Q4 earnings call.

Related:

Comments

Latest news

WhatsApp new Android update is available only for the 8.0 Oreo
Google has previously stated that, the new Android Oreo update is designed for the premium Android smartphones of future. Despite it's falling out in the U.S. market, Huawei is committed to pushing Android Oreo to all eligible devices.

Spotify is testing a new app that's just for listening to playlists
You switch between them by scrolling; Spotify specifically calls out that no typing or searching is necessary to use Stations . The app also includes the service's popular, individually personalized playlists such as Discover Weekly and Release Radar.

The latest Marvel trailer reveals an awesome new partner for Ant-Man!
Scott Lang, played by Paul Rudd , is trying to deal with the consequences of his choices as both a superhero and father. As he struggles to rebalance his life with his responsibilities as Ant-Man, he's confronted by Hope van Dyne and Dr.

Did Priyanka Chopra hint at her role in Meghan Markle's Royal wedding?
Priyanka also gushed over her "normal and sweet" friend, who she goes on to cal an "icon". "She's just right for it", the actress said.

Other news