Digital Advertising Industry News


Stop the Panic! Facebook Is Still Growing

July 26, 2018 Kathy Bryan

The sky isn’t falling. Despite Facebook stock plummeting after the release of the company’s Q2 report, Facebook is still growing by the billions. In fact, recent changes by the social media giant may have made Facebook an even better platform for marketers to connect with their audiences.

Yes, Facebook’s Q2 Report Was Bad for Wall Street.

Facebook reported disappointing Q2 earnings late Wednesday, and Wall Street is up in arms, as shown by today’s headlines:

  • Forbes: 2 Reasons Facebook Is Dead Money
  • CNBC: Facebook Is On Pace for Its Worst Day Yet
  • Bloomberg: Facebook Takes Historic Plunge as Scandals Finally Take a Toll
  • TheStreet: Facebook Earnings Call Disaster Reminds Investors of Deadly Investing Mistakes

If the stock price doesn’t rally before the closing bell, July 26, 2018 could go down in history as the day Facebook lost more than $100 billion.

But, Facebook’s Q2 Report Was Good for Marketers

For marketers, we have an important reminder: FACEBOOK IS STILL GROWING!

Facebook Q2 2018 Reported Growth

Here’s what Facebook reported for Q2:

  • Facebook’s advertising revenue climbed 42% year over year (YOY) to $13.2 billion in Q2 2018.
  • Facebook’s monthly active user (MAU) count was up 11% YOY to 2.23 billion as of June 30, 2018.
  • For the combined Facebook, WhatsApp, Instagram and Messenger family, the MAU count rose to 2.5 billion.
  • Facebook’s volume of daily active users (DAUs) also grew 11% YOY to 1.47 billion.
  • Facebook’s mobile advertising revenue grew 50% YOY to $11.9 billion and now accounts for approximately 91% of total ad revenue.

Facebook Continues to Innovate

According to Facebook COO Sheryl Sandberg, Facebook is “Helping businesses leverage the power of mobile, developing innovative ad products and making our ads more relevant and effective.”

Concentrating on the three aforementioned key priorities, Facebook launched a number of new features this year to “bring people closer together,” and they’re focused on growing the population of Facebook groups from 200 million to 1 billion people. For marketers, Facebook has recently launched Facebook AR Ads, Instagram TV and in-app shopping on Instagram. The new products were designed to help get compelling and actionable content in front of consumers.

Facebook Is Making Significant Investments in Transparency and Privacy

Important for continued growth, Facebook is working hard to enhance transparency and privacy across their platform.

  • Facebook provided access to every user to see all the ads any page is running plus metrics for each ad, including budget and impressions.
  • In an effort to eradicate misinformation on their platform, Facebook is doing away with financial incentives for spammers and removing fake accounts.
  • Facebook invested in sophisticated artificial intelligence (AI) to quickly remove bad or false content.

Because they’re planning significant expenditures in privacy and security enhancements, Facebook executives felt it necessary to warn investors of the potential impact on future profitability. Bad for Wall Street, but good for Facebook users and marketers.

Still Want to Be Sad? Here’s the One Tiny Bit of Bad Facebook News for Marketers

In Q2, the average Facebook ad price increased 17% — driven by increased competition across their platforms as impression volume grew 21% during the same period. For advertisers, this means the potential for increased impression, click and lead costs.

We’ve said it before, and we’ll say it again: Facebook is too big to fail. Despite facing industry-changing challenges, Facebook continues to grow and set the stage for long-term success.


Are you maximizing Facebook opportunities? Contact Team DMS to schedule a call. Our social advertising experts can help you navigate the Facebook in 2018 landscape to ensure your campaigns continue to perform.

About the Author

Kathy Bryan

Kathy Bryan is the Chief Marketing Officer at Digital Media Solutions (DMS). In this role, Kathy is responsible for all aspects of marketing and communications for DMS, the leading global martech company leveraging innovative, performance-driven brand and marketplace solutions to connect consumers and advertisers.

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