Friday, May 14, 2021

Facebook records drop in hours spent by visitors, as profits mount


Jaafar Jaafar
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
tiamin rice

Facebook has reported a big jump in profits even though people are spending less time on the world’s biggest social network.

The company said its priority is to encourage personal interaction among users, rather than simply boost the number of hours they spend on Facebook.

Co-founder Mark Zuckerberg said changes enacted by Facebook cut time spent on the site by some 50 million hours per day. But Facebook’s chief operating officer argued that having users engage more with friends’ posts could lead to further financial opportunities for the company, AFP reports.

“Helping people connect is more important than maximising the time they spend on Facebook,” Zuckerberg said during an earnings call.

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“We can make sure the service is good for people’s well-being and for society overall.”

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He said that in the last couple of years, content from viral videos or posts by businesses have grown to a point where it is “crowding out the connections people value most.”

Facebook is giving posts from friends and family priority over content that is not as likely to engender genuine personal interactions, according to Zuckerberg.

“We made changes to show fewer viral videos to make sure people’s time is well spent,” Zuckerberg said.

“In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day.”

Chief operating officer Sheryl Sandberg said that getting people to engage with more posts by friends actually ramped up opportunities for the social network to make money.

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Facebook shares dropped more than four percent after the earnings figures were released, but regained lost ground and even rose slightly to $189.30 in after-market trades that followed the earnings call.

Facebook said that profit in the final three months of last year climbed 20 percent to $4.26 billion as both ad revenue and ranks of members grew.

Revenue in the quarter leapt 47 percent to nearly $13 billion, but expenses also rose as its ranks of employees grew to finish the year at 25,105 workers.

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Facebook said the number of monthly active users hit 2.13 billion in the past quarter, up 14 percent from a year ago.

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Facebook said it set aside an additional $2.27 billion for taxes on profits to be repatriated from overseas, taking advantage of a lower rate in a recently approved US fiscal overhaul.

Analysts have been cautious about Facebook as it revamps its News Feed as part of an effort to curb misinformation and focus on updates from friends and family, which are highlighted over advertisements, celebrity and media posts in a recently-introduced update.

The company cast the latter changes as part of a refocus on “community” — prioritising social interactions and relationships.

“2017 was a strong year for Facebook, but it was also a hard one,” Mr Zuckerberg said.

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