Facebook Profits as Omni-Channel Marketing Takes Hold
Social media site Facebook has announced that quarterly income in the last quarter of 2015 topped the $1 billion mark.
The net (post-tax) figure was higher than expected by the markets but was offset slightly by a rise in costs. However, the company still posted profits 10 cents per share above the market expectations. About 1.59 billion people accessed Facebook at least once a month in the fourth quarter, up from 1.55 billion three months earlier.
The surge in profits suggests that the company is beginning to see a return on its acquisition of the photo-based social network Instagram. The company can command a higher price for advertising over users images than they are able to achieve in the more text-based environment of Facebook.
Analysts point out that the company still has many untapped revenue drivers at its disposal, including messaging and virtual reality. Earlier this month, Facebook’s WhatsApp messaging unit said it would scrap its subscription fee and test ways to help businesses to interact with users. The increasing profit briefly pushed the company’s shares above a valuation of $300 billion.
Facebook Gets A Grade from Omni-Channel Marketers
The good news for the group came on top of a recent report from the E-Marketer website that named the social media giant as the most effective social media platform for advertising. The report reflects that the increasing time spent with social media has driven advertisers to use their social activity as part of their omnichannel marketing mix, rather than as a fun bolt-on to their core strategy.
The report, titled “Social Advertising Effectiveness Scorecard: Industry Execs Grade the Leading Platforms”, asked respondents from 29 marketing agencies the grade that they would give the social media sites for the ad targeting ability of the main platforms. Facebook was awarded an A for its ad targeting capabilities with Twitter and LinkedIn each receiving a grade B.