The Facebook Q3 2020 Report shows positive results in terms of revenue generated and user base, with advertising continuing to hold the fort. More of such highlights would aid brands and advertisers with an overview of the platform.
Q3 2020 managed to be beneficial, but in terms of brand reputation, it has been a rough quarter for Facebook, with the #StopHateForProfit initiative against the platform’s moderation of hate speech, joined by several notable brands to halt paid advertising, and by celebrities freezing their accounts for a period.
A Netflix Original ‘The Social Dilemma‘ bringing out the dark side of our screens, was widely being discussed and the excerpts from former employees of Facebook, and more tech companies sparked several questions about the control of social media on users’ lives.
Presently, Facebook, Twitter, and Google are being questioned by US Senators over the control of what stays on the platform and what does not. The immunity that these companies enjoy against being sued due to Section 230, a law that says these companies are not responsible for what the users post on the platform.
Against these, and more of such concerns, the dependence of people on staying virtually connected and online shopping — the two major trends of the year have yielded positive results for the company despite a majority of the economy facing downfall, and the company’s dwindling brand reputation.
- Advertising continues to be the prime earner, and the ad revenue generated is $21,221 millions for the third quarter of 2020, a 22% increase year-over-year
- Facebook daily active users (DAUs) were 1.82 billion on average for September 2020, an increase of 12% year-over-year
- Facebook monthly active users (MAUs) were 2.74 billion as of September 30, 2020, an increase of 12% year-over-year
- Facebook DAUs and MAUs in the US & Canada declined from the second quarter 2020 levels which were elevated due to the impact of the COVID-19 pandemic
- The platform expects this trend to continue, DAUs and MAUs in the US & Canada would be flat or slightly down compared to the third quarter of 2020
- The boosted shift to online commerce from physical outlets resulted in increased demands for advertising
- Facebook expects the fourth-quarter 2020 year-over-year ad revenue growth rate to be higher than the reported third quarter 2020 rate, driven by continued advertiser demand during the holiday season
- Online commerce being the platform’s largest ad vertical, the company expects it to be the pillar holding or increasing the ad revenue growth in 2021
- Facebook is also monitoring the potential impact of data transfers in light of recent European regulatory developments