The economic situation in the world is still grim, with the coronavirus and restrictions of all kinds taking their toll. But the financial performance of online advertising services and companies is very encouraging! They are not only showing very good growth, they are also exceeding analysts’ forecasts!
Facebook’s profit exceeded expectations
Facebook reported financial results for the third quarter of 2021: the company’s profit exceeded market expectations.
- Facebook’s quarterly revenue has grown by 35% year-on-year to $29 billion.
- Advertising revenue showed a 33% increase to $28.28 billion, despite Apple’s new privacy rules. However, the company warned that the situation has not yet stabilized.
- The profit was $3.22 billion.
The number of active Facebook users also continues to grow. Daily audience increased to 1.93 billion in the third quarter. Monthly audience reached 2.91 billion.
Facebook CEO Mark Zuckerberg said that the company plans to put more emphasis on short video service Reels, which directly competes with TikTok, in 2022. This is intended to make Facebook and Instagram more attractive to users aged 18-29. According to Zuckerberg, the implementation of these changes will take years and will eventually be as significant for Facebook as the introduction of News Feed and Stories.
Google’s advertising revenue has increased by 43%
Alphabet (Google’s parent company) has reported for the third quarter of 2021. The holding company’s revenues exceeded $65 billion. Revenue from advertising has grown by 43%.
- Google earned $53.13 billion from advertising. During the same period last year, the figure was $37.1 billion. Google’s services, primarily search ($37.9 billion), YouTube and the Ad Network ($8 billion) remain the main sources of revenue.
- Advertising on YouTube brought in $7.21 billion ($5.04 billion a year earlier). The head of Alphabet and Google Sundar Pichai said that YouTube has recently passed the 50 million subscribers mark – as many users pay for YouTube Premium and music service (this figure includes those who have connected a free trial period).
“Yandex also reported financial results for the third quarter of 2021. The company’s revenues increased by 52% year-on-year to RUB 91.3bn.
Net profit in the third quarter amounted to RUB 3.9 billion, while adjusted EBITDA was RUB 5.6 billion.
Based on current financial results, Yandex expects total group revenue to be RUB 340-350 billion for the full year 2021.
Financial results for the 3rd quarter of 2021
Twitter’s revenue increased by almost 40%
This growth was driven by a 6% increase in ad volume and a 33% year-over-year increase in ad costs. The company’s total revenue was $1.28 billion.
The company increased the number of its users outside the U.S. by 5 million compared to the previous quarter. The audience in the US remained unchanged.
As a reminder, Twitter is constantly working on adding new features to attract users. For example, the company has added themed communities as well as improved its advertising tools.