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Recap: Facebook’s Q3 2016 Earnings Call

As highlighted in our Q3 2016 Global Facebook Advertising Benchmark Report, direct response marketers using Nanigans software to advertise on Facebook continue to invest heavily in the channel as a result of rising returns. 
Among 20 of the highest-spending ecommerce and game advertisers using Nanigans over the past year, return on ad spend (ROAS) rose by an average of 26% year-over-year in Q3 2016 – driven in part by increased adoption of video ads and Facebook’s Audience Network.

Yesterday’s Facebook earnings call similarly reflected the continued growth and success of the platform:

  • Total revenue grew by 56% year over year to $7.01 billion
  • Mobile ad revenue accounted for 84% of total ad revenue (vs. 78% this time last year)
  • Facebook has crossed the threshold of 1 billion daily users on mobile

For further takeaways from Facebook’s Q3 2016 earnings call, read on:

Stats and Facts

Facebook Revenue Q3 2016

Reach

  • Facebook now has 1.79 billion monthly active users
  • 40 million people have now connected to the web through Internet.org
  • Instagram has 500 million monthly active users

 

Facebook daily active users Q3 2016

Recent Developments

  • Facebook Live has seen 4X growth
  • Instagram Stories unveiled in August
  • Facebook Workplace launched for business
  • Marketplace tab added in October
  • Additional 3rd party data providers introduced

Takeaways For Advertisers

Brush up on your video marketing – “In addition to making it easy to share video, we also want to make it easier to capture video. In most social apps today, a text box is still the default way we share. Soon, we believe a camera will be the main way that we share.” – Mark Zuckerberg

Adapt your creative according to channel - “We know that marketing shifts take time. The first TV ads showed people standing in front of microphones reading their radio ads. Similarly, many of the first mobile video ads were TV ads dropped into mobile. Ads optimized for each platform often perform better so marketers are increasingly tailoring their creative for mobile.” – Sheryl Sandberg

Sync your online and offline objectives – “Businesses can use Dynamic Ads for Retail to show people the products available at their closest location in real-time, and reach people likely to visit their stores.” – Sheryl Sandberg

Looking for further details on the call? Here’s some additional coverage:

Or you can go straight to Facebook investor relations to view the slides, listen to the call, and read the transcript in full.

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