Facebook continues to make a ton of money…
… but for months, Facebook execs have warned that its advertising revenue growth will slow down in 2017 as it stops squeezing more ads into the average news feed. But in Q1, Facebook showed no signs of slowing down just yet.
Counterbalancing Facebook’s stagnating ad load is its still-ballooning user base (most of whom use Facebook on their phones, though Facebook no longer breaks out its mobile audience numbers).
As with its audience, mobile dominates Facebook’s advertising revenue, but its desktop ad revenue continues to hold steady.
Even as Facebook maxes out the number of ads it can show the average user, it has been able to increase, year over year, the amount of money it makes per user.
With more users in total, Facebook has been able to serve more ads in total. And at the same time as its ad supply has increased, so has advertiser demand, as indicated by Facebook’s continually higher ad prices. (This chart will be updated when Facebook announces Q1 figures during its quarterly earnings call this afternoon).
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Author: Tim Peterson