What Facebook Inc (FB) Earnings Propose For The Future

The social media company is expected to grow even more now that it has opened Instagram for ads.

Facebook Inc reported earnings for the third quarter of the year in a very positive way, and clearly ended up beating all the estimations made by the analysts in the market. The earnings showed that the analysts and equity firms covering the stock activities of the social media company with a bullish attitude where not bullish about it enough, as the results presented by the giant to the investors on the final reporting day turned out to be a little too much over the positive side. As for how the investor sentiment should be, now that the earnings have been announced, analysts believe that there is a lot more to rely on for positivity coming from the Silicon Valley based company’s side for the upcoming future.
Presently, Facebook business is enjoying quarterly profit coming from the mobile ad business to have made up around 78% of the total profit which shows that the giant is slowly relying more and more on the revenue being generated from online ads. According to the equity firms, the best way to grow that revenue percentage on the whole can be done by monetizing its photo sharing app, Instagram, which is a platform yet to be used for displaying of ads.

The fact that Instagram is one of the social media apps which have been gaining users on a massive level on a daily basis makes it all the more interesting for businesses to think of it as a great platform to showcase their products in the most effective of ways. According to the analysts belief, it can also been seen that the social media giant is aware of all the potential Instagram has and how it can help the giant to increase its revenue generation.

Recently the Chief Operating Officer of Facebook business informed the industry that it will be making ads on Instagram available for all the marketers and this will be done in exactly the same way that it gets ads for the social media website. Sheryl Sandberg, the COO, also mentioned in one of the press conferences that the kind of feedback which has so far been received by the marketers is quite impressive and it just opens up more space for the company to roll out similar activities for its other projects as well, which could be of either Whatsapp or Facebook Messenger.

However, news suggests that the networking giant is not looking forward monetizing any of the latter subsidiaries of the company any time soon and this only looking forward to focus on Instagram for now.

Facebook's Ad Network Growth in Europe Hindered By Watch Dogs

The media giant is yet again facing issue regarding privacy in the European region as it tries to introduce a new ad feature.

In a recent published news article, it was seen that Facebook Inc has yet again found itself in some unwanted trouble. It has so been informed by the Wall Street Journal reporters that the social media company has been making attempts to introduce a new advertising policy in the European region but die to the watch dogs that have previously been a little too tough on the media site for security reasons, are now having issues with the firm’s ideas again.The watch dogs have increased their surveillance on the social networking site as it has a shaky history of trying to temper with the personal information of the users, something that has become a point of attention for the authorities in the past.

Analysts are of the opinion that till now Facebook has tried to overcome the issues that the authorities in the European region seem to have, but if this continues, it can easily be said the revenue generated by the firm through the user base in the countries based in Europe is going to get affected quite adversely, something that the media company should be ready for. This is also being said as some analysts are of the belief that the ignorance received by the social media giant most of the time where privacy issues are concerned are not going to take it anywhere and at one point, it is going to regret it when revenues fall by a massive difference.

WSJ was seen getting into a discussion with a marketing firm that works in the digital field and it was reported that the firm eMarketer, emerged with the opinion that Facebook has shown little interest in solving the privacy concerns that the European regulators have always come up with which is something that should be taken into consideration by the firm before it is too late.

The digital firm believes that the social media website needs to keep a check on where there are loopholes in its system and solve them. In case it does not do that, the firm informed that no such signs of growth can be shown in which the media giant can grow itself in the region. This will not only make it unpopular in other countries of the world but will also result in it receiving much lesser revenue on an overall basis.

The fact that Facebook enjoys active usage of around 300 million users from countries in Europe is something to be reckoned with and can definitely not be ignored. By losing those valuable users the firm is going to suffer on the cash flow and for that it needs to work on its privacy policies.