Users spend less time on Facebook

Photo AFP

AFP

Wednesday, 31 January 2018 20:10

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Wednesday, 31 January 2018 20:13

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Facebook is always in great shape financially, but its more than 2 billion users spent less time on the network by the end of 2017, due to changes by the social network, engaged in a reform of its contents.

Noting that 2017 was a year of “strong” for the group, its boss Mark Zuckerberg has also noted that it had been “difficult,” citing “the debate around the utility of social networks” and “the misuse of (the) platform, including the interference of other States, the dissemination of false information, sensationalism and clivantes”.

“One of the most important things that we can do is ensure that our services are not just fun to use, but they are also good for the company,” assured Mr. Zuckerberg during a conference call with analysts devoted to the results.

Criticism rages for more than a year on the social networks, especially Facebook, is accused of having left swarming the misinformation –especially during the american presidential campaign of 2016– to be dangerous for democracy or even sustain addiction décérébrante of the public.

Decided to counter these criticisms, Facebook has embarked on reforms of its contents, some of which, such as the limitation of viral videos, are made by the end of 2017.

Of the changes that have resulted in a reduction of 5% of the time spent on the network in the last quarter, ” said Mr. Zuckerberg, who also found a decrease in the number of active users daily in the United States and Canada between the third and the fourth quarter.

“Helping people communicate is more important than pushing them to spend as much time as possible on Facebook,” assured Mr. Zuckerberg, who expects the trend to the decline in time spent on its platform continues.

Especially since the beginning of the year, the group has announced new reforms, such as the limitation of institutional publications (media, brands…) to the benefit of the publications of friends and family.

In summary, have explained to the officials of Facebook, it is assigning priority to quality over quantity, the interactions between the users rather than the consumption of “passive” content.

These elements were at first scared off investors, the title losing up to 5% in electronic trading after the close of Wall Street.

“Good for business”

The group also has a lot more spent in 2017 than in 2016, in particular through new hires to combat the objectionable material. The group account 25.105 employees, 47% more than at the end of 2016. Expenditure (video, security, research, etc.) are expected to increase in 2018.

But, have hammered the officials, these investments and changes in the content “will help (Facebook) to build a stronger community”. “This will be good for the business long-term,” assured Mark Zuckerberg.

More concrete, the number two Sheryl Sandberg has explained that the reliance on the quality and not the quantity of time spent on Facebook would have a positive impact on the “monetization”, i.e. on advertising revenue.

Of the insurance that allowed the title to erase his losses: he wore the same 1.30% to 189,32 dollars to 00H50 GMT (Thursday).

Facebook has also confirmed its good financial health. Net income for the fourth quarter appears to be $ 4.3 billion, up 20%, offset however by a tax charge exceptional 2.27 billion related to the tax reform approved in December. On the whole the year 2017, the net profit jumped 56% to almost $ 16 billion.

In terms of sales, it has jumped 47% to $ 13 billion on the quarter. On the year, it has exceeded 40.6 billion (+47%). The number of monthly active users is in line with expectations, to 2.13 billion (+14%).

The advertising revenue on mobile, the engine of the group, accounted for 11.4 billion of quarterly sales (+57%), or 89% of the advertising revenues total ($12.8 billion) in the fourth quarter, compared to 84% in the same period of 2016.