SRAX Recap: Facebook and Twitter Beat First Quarter Expectations

In this week’s digital news, Twitter beats Q1 expectations, streaming services save the music business, Facebook unveils censorship guidelines, and more.

Both Facebook and Twitter beat expectations for first quarter.

Despite the increasing scrutiny over consumer data use, Facebook reported $11.97 billion in revenue for Q1 2018, a 49% increase from Q1 2017. The company also posted a $4.99 billion profit for first quarter and the number of daily users rose to 1.45 billion. Twitter reported $665 million in revenue for Q1, also beating Wall Street’s expectations. In addition, the company posted a 3% YoY increase in monthly active users, reaching 336 million, and a 5% increase in stock yesterday morning. And while 91% of Facebook’s revenue accounts for mobile ads, more than half of Twitter’s revenue accounts for video ads.

Brands favor Instagram for influencer marketing over Snapchat.

Eighty percent of 400 micro-influencers (minimum of 25K followers) reported an increase in platform-specific campaigns. And 58% cited Instagram as the most requested channel from brands, whereas no single respondent claimed to focus exclusively on Snapchat. In other influencer news, just 13% of influencers said that brands they work with give them freedom to use authentic content. And less than 25% of respondents say the brands they work with repurpose their content for other channels and platforms.

Snapchat tests six-second unskippable ads for Snapchat Shows.

The new ad format, Commercials, will be six-second ads that run on Snapchat’s Shows, which are 4-5 minutes long. The thought behind this is that users are already accustomed to watching ads before free content on other channels, however, this is still new for Snapchat. Sources say that testing will begin mid-May. In other news, Snap is debuting a new set of Spectacles with new colors (Ruby, Onyx and Sapphire) and better specs. The new models are water resistant and lightweight with improved resolution and sound. 

Streaming services make up 43% of all music revenue.

Global recorded music revenues reached $17.4 billion in 2017, an 8% increase for last year, thanks larger in part to subscriptions to streaming services. Streaming revenues accounted for 43% of all revenues, a 39% increase YoY. And not only has streaming services increased revenue, it has also led to a 50% decline in music piracy since 2013. The report predicts that the number of paid music subscribers will reach 90.1 million by 2025, nearly double today’s 49.1 million. More from the research here.

Facebook unveils censorship guidelines and appeals process.

Facebook is finally opening up about how it decides what posts to take down and why. “We decided to publish these internal guidelines for two reasons. First, the guidelines will help people understand where we draw the line on nuanced issues,” says VP of global product management Monika Bickert. “Second, providing these details makes it easier for everyone, including experts in different fields, to give us feedback so that we can improve the guidelines – and the decisions we make – over time.” Along with publishing the 27-page guidelines, the company is also giving users the ability to appeal the decision if they believe a post was taken down unfairly. The policy will initially apply only to nudity, sexual activity, hate speech and graphic violence, says Bickert.

 

 

 

Published on 2018-04-26

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