credit: Matt Southern
Following a historic drop in stock price, Facebook sets its sights on video to regain its momentum.
Following the greatest single-day stock drop in recorded history, Facebook CEO Mark Zuckerberg intends to shift the company’s focus to growing short-form video.
Zuckerberg communicated this plan to Facebook employees during a company-wide virtual meeting.
The stock price of Facebook’s parent company, Meta Platforms Inc, dropped by over 200 billion dollars this past week after reporting major losses in a quarterly earnings report.
Not only did Facebook’s expenses exceed its revenue, but it experienced a first-ever decline in daily active users.
From the third quarter to the fourth quarter of 2021, almost half a million people stopped logging into Facebook every day.
How Did This Happen?
The reason for the loss of daily active users is due to TikTok, Zuckerberg says.
Explaining his company’s dismal performance, Zuckerberg cites an “unprecedented level of competition” from TikTok.
The for the inflated expenses Meta incurred this past quarter is due to the company’s long-term vision for the future.
Meta is on a spending frenzy as it works to make the Metaverse the next big thing — an investment which has yet to pay off.
In addition to having greater expenses, Meta is bringing in less money from advertising. Apple’s App Tracking Transparency feature is said to be eating into ad revenue.
What Does This Mean For Marketers?
The writing on the wall indicates that video is the future of social media marketing.
TikTok is thriving, Instagram has been prioritizing video for over a year, and Facebook is now pivoting to video.
Even Snapchat is turning a profit for the first time, based on its recent earnings report.
Social media users have made it loud and clear they want to go where they’re being super-served with video content.
Now it’s the job of social media marketers to meet the demand.
If video editing and production isn’t already part of your skill set, it certainly should be.
If you or your comp[any needs any help with TikTok or FB advertising, please call the experts at SPYDERwebmarketing.com at 833 377 9337 x 701 or email us at info@spydeerwebmarketing.com.
Jim is a Senior Digital Marketing Strategist Spyder Digital and has over 19 years of experience in the field. His insight and ability to drive new business for his clients from the Internet is unparalleled.
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