Facebook Reports Record Ad Revenue for Q2 2021, Despite Apple's iOS Privacy Changes

[MacRumors]

Undeterred by Apple's recent anti-tracking privacy changes, Facebook continues to rake in billions in advertising revenue, as evidenced by its latest fiscal 2021 second quarter results announced Wednesday.

On the company's Q2 earnings call, the social network revealed it had accumulated $28 billion in ad revenue, representing a 56% year-on-year increase. That saw Facebook more than double its profits from the previous year, earning $10.4 billion, up from $5.2 billion in 2020.

Despite the figures for its main revenue stream, Facebook CFO David Wehner did note that the company expects to feel the brunt of Apple's App Tracking Transparency rules in the third quarter.

"We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recent iOS updates, which we expect to have a greater impact in the third quarter compared to the second quarter."

Apple in iOS 14.5 introduced App Tracking Transparency, which requires app developers to ask for express permission before accessing the IDFA for tracking users across apps and websites.

Prior to the enforcement of App Tracking Transparency, Facebook launched a campaign attempting to position Apple as an enemy of small businesses, and even took out full page newspaper ads decrying the new feature. "Apple's latest update threatens the personalized ads that millions of small businesses rely on to find and reach customers," reads Facebook's site encouraging small businesses to "add their voice" and speak out against ATT.

However, Facebook CEO Mark Zuckerberg in March began downplaying the potential impact of App Tracking Transparency and said that the changes could ultimately benefit Facebook if Apple's new policies encourage businesses to advertise and sell exclusively through Facebook platforms.

According to early data from the ad-measurement firm Branch Metrics, less than 33% of iOS users have permitted apps to track them across other apps. The remaining 67% of iOS users opted not to permit apps to track their activity. As a result, the amount of advertiser spending on Apple's mobile platform has fallen by about one-third between June 1 and July 1, causing advertisers to spend more money targeting Android users instead.

During Wednesday's earnings call, Facebook said the number of active users across Facebook, Instagram, and WhatsApp has increased by 12% year-on-year, with 2.76 billion people now counting as daily active users.

Article Link: Facebook Reports Record Ad Revenue for Q2 2021, Despite Apple's iOS Privacy Changes

 

[ikir]

Facebook must die

 

[contacos]

Not once did I think „damn I wish I could buy those sun glasses or iPhone cases AGAIN“. Sometimes I just click on those ads out of spite in case they have it set to pay per click.

thankfully the only place I come across ads is on Instagram and I have been locked out of my FB Account for years because I forgot to update my phone number. Never looked back.

 

[Evangelion]

We need to cleanse the Earth of Facebook and their filth.

 

[mymacrumorsname]

I really don't understand why companies spend money on online ads. I never bought anything through an online ad unless I was explicitly searching for it because I had the wish to buy this product anyway because heard of it from friends or in news. Offline ads have had an impact me on me a few times. But online, NO.

 

[mazz0]

But all the world's small businesses have gone bust

 

[senttoschool]

I really don't understand why companies spend money on online ads. I never bought anything through an online ad unless I was explicitly searching for it because I had the wish to buy this product anyway because heard of it from friends or in news. Offline ads have had an impact me on me a few times. But online, NO.

Because online ads can work extremely well for one thing.

You can target the exact audience you want. Offline ads can't. You can track from ad click/impression all the way to purchase with online ads, at least before the Apple change. This would be impossible for offline ads.

 

[saudor]

I really don't understand why companies spend money on online ads. I never bought anything through an online ad unless I was explicitly searching for it because I had the wish to buy this product anyway because heard of it from friends or in news. Offline ads have had an impact me on me a few times. But online, NO.

The demographic of this site would likely not but there's tons of older/average joe folks who might get "tricked" into thinking it's part of content

There's also non-quantifiable metrics such as brand awareness. You see product x on facebook. You LOL at it.
Then you go to your local store some weeks later and also see the same product x. You might be more inclined to buy product x over product rando just because you've "seen it before somewhere" without even realizing.

 

[mymacrumorsname]

Because online ads can work extremely well for one thing.

You can target the exact audience you want. Offline ads can't. You can track from ad click/impression all the way to purchase with online ads, at least before the Apple change. This would be impossible for offline ads.

Ye, I got this. But who clicks on them unless by accident? If I see a product being advertised I lose the wish to buy it. But the numbers seems to prove that this concept is working.

 

[69Mustang]

Facebook must die

The numbers seem to suggest your desire will remain unfulfilled for the foreseeable future. The numbers also sorta kinda indicate yours is a minority opinion. Maybe not on this and other tech sites, but a minority opinion nonetheless.

 

[senttoschool]

Ye, I got this. But who clicks on them unless by accident? If I see a product being advertised I lose the wish to buy it. But the numbers seems to prove that this concept is working.

Plenty of people click on them and continue to click on them. This is why both Google and Facebook just reported a blowout quarter.

 

[Glideslope]

The Cancer on Humanity must be removed.

 

[DinkThifferent]

Perhaps we can lock Mark Zuckerberg in a room and let him watch infomercials 24/7.

 

[return2sendai]

A few years ago, I bought a printer online. I went to an electrical shop first, checked out the printers and prices, and settled on one. Then I popped into a local coffee shop around the corner from the electrical shop and ordered the same printer from a different online retailer for half the price. Then, for the next few weeks, I was followed around the web by ads for printers. Huh? But I just bought a new printer. You ad-mongers obviously know I just bought a new printer online because now you are bombarding me with ads for printers. But I just bought a new printer. Why would I want to buy another printer immediately after I just bought a new printer? Pointless advertisements. Never understood the concept of online ads which are based on tracking your previous purchases. But I just bought a new printer! Oh, I should add, at that time I had a Facebook account. I don’t now. I left the platform 3 years ago. Never looked back. Ooooh, now that is a nice vacuum cleaner…..

 

[return2sendai]

Perhaps we can lock Mark Zuckerberg in a room and let him watch infomercials 24/7.

He wouldn’t last a day.

 

[senttoschool]

Then I popped into a local coffee shop around the corner from the electrical shop and ordered the same printer from a different online retailer for half the price. Then, for the next few weeks, I was followed around the web by ads for printers. Huh?

This is likely because the store you made the purchase from didn't have a Facebook or Google tracking pixel.

Or perhaps Google/FB's analytics (based on millions of printer purchases) thinks you might buy one more or return your old one and buy another.

PS. I'm a bit tired of explaining just how freaking effective FB/Google ads can be to old geezers here.

 

[rgeneral]

If every person only use Facebook with their browser and ad blocker on their mobile, I think that number will go down.

 

[senttoschool]

If every person only use Facebook with their browser and ad blocker on their mobile, I think that number will go down.

Only matters for desktop/laptop users.

Most of FB's revenue is from their mobile apps, which cannot be touched by an ad blocker.

 

[boswald]

Perhaps we can lock Mark Zuckerberg in a room and let him watch infomercials 24/7.

“You can make THOUSANDS of dollars per day, just by placing tiny little ads in the corner of your screen!”

(Don LaPre voice)

 

[TakeshimaIslands]

Facebook must die

zuckbook will never die thanks to wall street and the government propping them up, at the very minimum it needs need to be broken up because big tech companies who make most of their money in data harvesting such as facebook, MS, Alphabet and amazon aws are becoming too powerful.
Sadly that will never happen because they are all in bed with the swamp receiving 100s billions in government and CIA/NSA dark money contracts.

 

[boswald]

I think I know how it works.

1. “Do you want to allow Facebook to use cookies? This data will track you.”

“Yeah, sure. Whatever. Just go away.”

2. “We need you to disable your ad blocker to keep the site free.”

“What?! I ain’t payin’ for that crap!”

 

[AirunJae]

 

[return2sendai]

This is likely because the store you made the purchase from didn't have a Facebook or Google tracking pixel.

Or perhaps Google/FB's analytics (based on millions of printer purchases) thinks you might buy one more or return your old one and buy another.

PS. I'm a bit tired of explaining just how freaking effective FB/Google ads can be to old geezers here.

Old geezers! Zuckerberg is a millennial. You have nothing to boast about. Gay rights, women’s rights, black rights. All battles won by my generation of old geezers. You are no revolutionary. You are a product.

 

[IIGS User]

Facebook must die

Everyone pack up and head to a different thread. All that needs to be said has been said by this person.

 

[ian87w]

So Facebook no longer has an excuse then for the privacy features on iOS.
There were issues about Facebook not moderating misinformation. I wonder why their app is still in the app store.