Facebook has reported a 22% increase in ad revenue, from US$17,383 million in 2019 to US$21,221 million, in the third quarter of 2020. This comes despite the ad boycott Facebook faced earlier in the year, with major brands such as Microsoft, Lego, Danone, Mars, Volkswagen Group, Diageo, and Coca-Cola temporarily pausing their advertising on the platform.
Additionally, the social media giant saw an increase of 12% in its daily active users, which it recorded an average of 1.82 billion for September 2020, an increase of 12% year-on-year. It also saw growth in its monthly active users, recording a number of 2.74 billion users, which is also an increase of 12% year-over-year.
Facebook said in its financial report that it expects its fourth quarter of 2020 year-over-year ad revenue growth rate to be higher than its reported third quarter 2020 rate, which will be driven by continued strong advertiser demand during the holiday season.
Facebook attributed COVID-19 to its growth, believing that the pandemic contributed to acceleration in the shift of commerce from offline to online. It also experienced increasing demand for advertising as a result of this acceleration.
Mark Zuckerberg, Facebook founder and CEO, said: "We had a strong quarter as people and businesses continue to rely on our services to stay connected and create economic opportunity during these tough times.” He added that Facebook continues to make significant investments in its products and hiring to deliver new and meaningful experiences for the community around the world.
Zuckerberg also added that considering online commerce is its largest ad vertical, a change in this trend could serve as a headwind to its 2021’s ad revenue growth. Facebook also expects more significant targeting and measurement headwinds in 2021. This includes headwinds from platform changes, notably on Apple iOS 14, as well as those from the evolving regulatory landscape.
Twitter witnessed a broad-based global rebound, driven by an upswing in advertiser sentiment for digital ads in general and for Twitter’s solutions, the resumption of more events and product launches, and continued strength in markets that saw earlier recoveries from the pandemic.
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