Oct
30
Facebook’s Ad Business Is Doing Great, But Teen Engagement Is Becoming a Problem
Posted in: Uncategorized
It was a good news-bad news quarter for Facebook.
First the good: Facebook’s ad business is firing on all cylinders. The company handily beat estimates on profit and revenue. Prices for its news-feed ads are climbing. And Facebook is now getting 49% of its revenue from mobile, up from 14% a year ago.
Then this: for the first time, Facebook conceded that engagement among teens has been dropping off. A quarter-over-quarter decline in daily usage by younger teenagers was observed, which could bode poorly for Facebook as it competes with Twitter, Snapchat and a plethora of messaging apps vying for people’s attention.
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