{"id":14455,"date":"2012-07-28T10:30:30","date_gmt":"2012-07-28T08:30:30","guid":{"rendered":"https:\/\/eastwind.es\/marketing\/en\/?p=14455"},"modified":"2019-08-20T03:45:48","modified_gmt":"2019-08-20T01:45:48","slug":"the-rise-and-rise-of-facebooks-costs","status":"publish","type":"post","link":"https:\/\/eastwind.es\/marketing\/en\/the-rise-and-rise-of-facebooks-costs\/","title":{"rendered":"The rise and rise of Facebook\u2019s costs"},"content":{"rendered":"<p>Facebook has increased its revenues a 295% to the $1.18Bn in 2nd Q 2012 from the $895 million obtained in the same period last year. Zuckerberg has managed also to rise ad revenues coming from advertising a 28% to $992 million, compared to the 2nd Q in 2011.<\/p>\n<p>But costs and expenses got 295% higher than in 2011.Capital expenditures for the quarter were $413 million, which means a 213% year on year increase and the company declares $52 million in new equipment financed by capital for this period.<br \/>\nThe result of the fast rise in Facebook\u2019s costs is a net income loss of $157 million compared to the $240 million income obtained in the same period 2011. Operative margin has sunk to a negative 63% compared to the positive 45% obtained in 2011.<br \/>\nIn this context Marc Zuckerberg (CEO and Founder of Facebook) said: \u201cOur goal is to help every person stay connected and every product they use be a great social experience,\u201d<\/p>\n<p>\u201cThat\u2019s why we\u2019re so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends.\u201d<br \/>\nNice objective, but companies seem not interested, at least not at the pace that Facebook increases and enhances the offer.<\/p>\n<p><span style=\"color: #3366ff;\"><strong>Ad improvements<\/strong><\/span><\/p>\n<p>Facebook lists two major devlopments in this period. First, the company has expanded the rollout of Sponsored Stories in News Feed and enabled advertisers to buy Sponsored Stories in mobile News Feed.<br \/>\nFacebook now has also independent ROI data from more than 60 advertising campaigns using a range of third-party methodologies like panels and marketing mix models -this is teh secon improvement-.<\/p>\n<p>The results show, says teh company, that 70% of campaigns resulted in a return on ad spend of 3x or better, and 49% of campaigns showed a return on ad spend of 5x or better.<\/p>\n<p><span style=\"color: #3366ff;\"><strong>Mobile developments<\/strong><\/span><\/p>\n<p>Facebook launched several new mobile products, including: a new Facebook Camera app for iPhone; an improved version of the mobile messenger app for both iOS and Android, and several updates to the Facebook Android app.<br \/>\nThe comapny launched global App Center where users can discover relevant apps for mobile and web.<br \/>\nApple announced plans for a deep Facebook integration throughout the next version of Apple\u2019s iOS and OSX.<\/p>\n<p><span style=\"color: #3366ff;\"><strong>A 67% increase in mobile Facebook monthly users<\/strong><\/span><\/p>\n<p>The social network posted monthly active users (MAUs) at 955 million as of June 30th, 2012,which means a 29% year-over-year increase.<br \/>\nDaily active users (DAUs) were 552 million on average for June 2012, an increase of 32% year-over-year. Mobile MAUs were 543 million as of June 30th, 2012, an increase of 67% year-over-year.<\/p>\n<p>No information on fixed to mobile accessd use transfer has been provided by the company. There\u2019s no information on total net users increase.<br \/>\nAnyway mobile seems actually pushing ahead the use of this already mature social network.<\/p>\n<p><strong><span style=\"color: #3366ff;\">Some agreements and purchases during the period<\/span><\/strong><\/p>\n<p>Facebook announced proposed acquisition of Instagram, a popular photo-sharing app.<br \/>\nThe company also entered into a definitive agreement with Yahoo! to settle all pending patent claims between both multinationals and deepen the companies\u2019 current business partnership.<\/p>\n<p>The social network began serving users from its new data center in Forest City, N.C. All these agreements and data center enhancement needed for investment.<br \/>\nCash and marketable securities grew, following the data provided by Facebook, to $10.2Bn, including $6.8Bn in net proceeds from its initial public offering.<\/p>\n<p>With the numbers in the hands, and bearing in mind that advertising contributes in a 84% to total revenues of the company, one must wonder if Facebook isn\u2019t perhaps developing a lot faster than what the digital social ad market is still able or prone to swallow.<\/p>\n<p><span style=\"color: #3366ff;\"><strong>Imagen sobre el titular.-<\/strong> Mark Zuckerberg (founder, Chairman and CEO of Facebook). \u00a9 Facebook.<\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">Related Eastwind Marketing links<\/span>:<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/eastwind.es\/marketing\/en\/is-nasdaq-going-definitely-social-facebook-shares-scored-over-the-38-dollars-per-title\/\" target=\"_blank\" rel=\"noopener noreferrer\">Is Nasdaq going definitely social?: Facebook shares scored over the 38 dollars per title<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Facebook has increased its revenues a 295% to the $1.18Bn in 2nd Q 2012 from the $895 million obtained in the same period last year. Zuckerberg has managed also to rise ad revenues coming from advertising a 28% to $992 million, compared to the 2nd Q in 2011. But costs and expenses got 295% higher &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/eastwind.es\/marketing\/en\/the-rise-and-rise-of-facebooks-costs\/\"> <span class=\"screen-reader-text\">The rise and rise of Facebook\u2019s costs<\/span> Leer m\u00e1s &raquo;<\/a><\/p>\n","protected":false},"author":8,"featured_media":14459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[9],"tags":[9712,9711,1005,142,372,8152,385,8151,1245,417,904,1102,6119,3694,411],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/14455"}],"collection":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/comments?post=14455"}],"version-history":[{"count":0,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/14455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media\/14459"}],"wp:attachment":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media?parent=14455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/categories?post=14455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/tags?post=14455"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/yst_prominent_words?post=14455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}