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Facebook in the zone: 5 things it’s doing right

Sharon Gaudin | April 29, 2016
Facebook reports that it’s killing it with revenue, users and mobile

3. Facebook users still coming on strong

Facebook also reported that its user base grew from 1.59 billion to 1.65 billion, and active monthly users on mobile have reached 1.5 billion.

"We started 2016 off well," Zuckerberg said during the earnings call, nothing that 1.09 billion people use Facebook every day. "In recent weeks, we're also consistently seeing more than 1 billion people using Facebook on mobile every day."

While the numbers don't show staggering growth, it's still solid growth, which has been so elusive to social rival Twitter.

Olds noted that it's impressive for Facebook to continue to grow its user base when it's already so big.

"I was surprised Facebook was able to grow users as much as they have in the last year," he added. "It's damned hard to get much growth when you already have 1.59 billion users around the world. Still, they managed to grow, which is a big achievement, particularly when you contrast it to Twitter, which is having trouble growing its user base."

Olds credits Facebook with reaching out to younger users with Instagram, while reaching the other age groups with Facebook itself.

"It's a great mix," he said.

4. Instagram and its younger users

Instagram is the Facebook-owned mobile social network that has grabbed the younger users that have remained so elusive to Facebook itself.

Users age 25 and younger aren't as enamored by Facebook as adults, mainly because they don't want to be sharing their photos and updates with their parents, aunts and uncles.

By acquiring Instagram, Facebook has solved that issue.

"We're also very happy with the way that Instagram is growing, with more than 400 million actives and more than 200,000 businesses advertising every month," Zuckerberg said. "Now we're focused on making the user experience even more engaging. With more content on Instagram all the time, people are currently missing about 70 percent of what's in their feed."

Zuckerberg said he intends to fix that issue. "That's why in the first quarter, we started rolling out Feed Ranking to help you see more of the posts that you care about," he added. "This is a long-term effort. But News Feed shows that ranking creates the best and most engaging experiences for our community."

Olds said it only makes sense for Facebook to invest in keeping Instagram a popular destination.

"Instagram is hugely important to Facebook as it's the vehicle that young users are using the most," he said. "There aren't a lot of challengers to Instagram right now, but I could see Twitter mounting a challenge with Periscope and their set of apps."

5. It costs big bucks to keep Zuckerberg safe

 

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