Facebook has enormous reach: +2.6 billion people use one or more of its apps every day, and more than 200 million businesses use its free tools.
That's why looking ahead, it's less about user growth and more about user monetization.
Last quarter, Facebook delivered a strong report featuring ad revenue growth of +31% YoY and Average Revenue Per User (APRU) growth of +19% YoY.
While LikeFolio can't track advertising placements, we certainly can track if consumers are talking about completing purchases on the platform.
Both Instagram and Facebook have recorded double digit increases in mentions of completing a purchase on the platform: +39% YoY, +11% YoY respectively. Instagram has nearly closed the gap with Facebook when it comes to conversion mentions, propelled significantly by the launch of Shops tab on its home page last year. Macro trends suggests Facebook is well positioned as advertisers continue shifting budgets in favor of digital ads (social and streaming) vs. traditional linear and print ads. The company noted potential headwinds stemming from Apple iOS 14 updates and an evolving regulatory landscape. So far, any changes haven't thwarted consumer shopping behaviors on the platform. Facebook is also exploring products outside of traditional social platforms. LikeFolio recorded an extremely positive Holiday season for Facebook's Oculus VR headset, and demand remains +41% higher YoY.