Holiday shopping is in full swing. If you haven’t started […]
FB ->META --- Does anyone care?
June 10, 2022
| That’s a wrap! The FB ticker is no more. Meta Platforms has officially transitioned to META. The news (which was a long time coming) propelled $META to the top of investor search lists. But we want to know: How is Meta faring in the eyes of consumers? |
| Overall Mentions of the company have increased at a steady clip: +16% YoY. This is a noted improvement from poor performance over the last year. Mentions in 21Q3 were the lowest we’ve ever recorded for the company. To be blunt: Meta has been in a bit of a rut. Its head-first dive into the metaverse has run into problems with retention issues for its VR headset (which we have highlighted before); Sheryl Sandberg, the company’s COO, has stepped down, and according to Bloomberg, it has now halted the development of its smartwatch. This on top of mounting lawsuits. However, there is some light for the Meta, and it comes in the form of its ‘legacy’ social media companies. |
| Meta’s Purchase Intent Mentions (think usage and downloads) are trending +14% higher YoY, boosted by Whatsapp (39% YoY), Reels (+29% YoY), and Instagram (+24% YoY). Unfortunately, Meta’s flagship platform, Facebook continues to show signs of weakness, with mentions continuing lower YoY: -10%. In February, Facebook reported the first drop in its active user base in company history, sending shares plummeting. Its revenue forecast also fell flat, pressured by Apple iPhone privacy changes the company estimates will result in a $10 billion hit in revenue, alongside stretched advertising budgets. So looking ahead: Facebook needs to effectively leverage its advertising prowess by connecting brands and consumers amid privacy limitations. While LikeFolio data can’t guage total ad spend, we can look at how effectively Facebook is matching up buyers and brands on its platforms. Here’s what we’re watching… Instagram Purchases are Recovering |
Furthermore, consumers talking about making a purchase directly from Instagram have started picking up.
Mentions are currently trending +29% higher YoY.
The company’s other social media shopping products are also gaining momentum.
Consumers talking about making a purchase directly from Facebook are pacing +7% higher YoY.
Bottom Line: Meta Platforms is firmly focused on the metaverse and future, and it is likely that shopping product catalogs will tie into metaverse development.
However, it's not time to discount the legacy social media brands under its umbrella just yet.
Keep an eye on these trends for continued improvement…
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