Its revenue from advertising rose 56% to $28.58 billion in the second quarter ended June 30, Facebook said.įacebook, like its peers, has seen increased demand for digital ads as the pandemic drove consumers to shop largely online, forcing several businesses to create online stores and markets using social media platforms. The company's total revenue, which primarily consists of ad sales, rose to $29.08 billion in the second quarter from $18.69 billion a year earlier, beating analysts' estimates of $27.89 billion, according to IBES data from Refinitiv. "Everyone will be watching any developments to their ad targeting system closely to see how that plays out given its huge role in helping Facebook monetise its apps," said Tom Johnson, WPP Mindshare's chief digital officer. Facebook has argued Apple's recent requirement that iPhone app developers begin asking users' permission to collect certain data for ads would harm its business and hurt small companies that rely on personalized advertising. But importantly, Facebook is the most exposed to Apple's privacy changes, and it looks like it is starting to have an impact to the outlook beginning in 3Q," said Ygal Arounian, an analyst at Wedbush Securities.įacebook said it expects Apple's recent privacy change, which requires iPhone app developers to begin asking users' permission to collect certain data for ads, to impact its ability to target ads and therefore ad revenue in the third quarter. "The user growth slowdown is notable, and highlights the engagement challenges as the world opens up.
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