Facebook Posts Strong Revenue Result, but Daily Active Usage Is Stalling in Key Markets

by WarriorForum.com Administrator
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A new article on Social Media Today reports that metaverse company Facebook has just published its latest earnings results. They show steady overall increases in both users and revenue as the platform continues to build towards the next stage of development and becoming an even bigger part of our everyday lives.

This may not be a great thing, given its influence in many aspects. But Zuckerberg's social media is still expanding, especially in developing markets - although there are some steadily growing signs of concern when you dig a bit further into the broader numbers and notes.
  • Facebook added 30 million more daily active users in Q2, taking it to 1.91 billion on average.
  • That's in line with Q1, with Facebook continuing to add significantly more users in the Asia Pacific region, despite a slowdown, and even a reversal, in other markets.
  • Facebook's DAU count has stalled in the US entirely, after declining in Q2 last year, while it's also now receding in Europe as well.
  • Facebook earns significantly more from the US and Europe than it does from other regions, so while it may be seeing overall growth, a reduction in usage in its prime markets could be an important element to monitor.
  • Overall, adding 28 million more users, at Facebook's size and scale, is still a major achievement. But if these markets continue to decline, that could spark further concern for the company.

"Advertising revenue growth in the second quarter of 2021 was driven by a 47% year-over-year increase in the average price per ad and a 6% increase in the number of ads delivered. Similar to the second quarter, we expect that advertising revenue growth will be driven primarily by year-over-year advertising price increases during the rest of 2021."
Facebook ad prices are rising, while the platform's daily active user count is stalling. That's largely driven by demand, but there are some important points to note for marketers within the headline growth figures. It's not all about the broadest audience reach, which Facebook is keen to project.
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