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OFFON

FACEBOOK INC

(FB)
  Report
Real-time Estimate Quote. Real-time Estimate Cboe BZX - 09/23 10:48:35 am
349.04 USD   +1.70%
10:00aWALL STREET STOCK EXCHANGE : As smooth as silk
09:30aINSIDER SELL : Facebook
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08:58aExclusive-Big Tech targeted by U.S. and EU in draft memo ahead of tech and trade meeting
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For advertisers, Snapchat's got the kids

02/12/2018 | 08:28pm EDT
FILE PHOTO: A visitor takes a picture of the Instagram application logo at the Young Entrepreneurs fair in Paris

SAN FRANCISCO (Reuters) - Social network Instagram has come to look more like rival Snapchat after copying some of its features, but marketers say Snapchat's younger audience and safeguards against poor placement drive enthusiasm for advertising on the smaller app.

Expectations for Snapchat's future tumbled with its stock price after an initial public offering last year, mainly over doubts that Snapchat could compete against Instagram, but last week, Snap reported a 72 percent rise in quarterly revenue that beat analysts' forecasts and re-ignited confidence.

Snapchat, owned by Snap Inc (>> Snap Inc), retains an advantage with the millennial generation who popularized its disappearing messages and animated face masks, despite attempts by Facebook Inc-owned (>> Facebook) Instagram to woo them away, advertising executives say.

The advantage among young people is even expected to widen this year, at least in the United States, according to estimates released on Monday by research firm eMarketer. This year, Instagram will add 1.6 million Americans under 25, while Snapchat will add 1.9 million in the age group, eMarketer said.

The different demographics mean businesses feel obligated to spend on Snapchat even if they already do so on Instagram, said Aaron Shapiro, chief executive of digital marketing firm Huge. "It's all people who are reaching youth," Shapiro said of Snapchat's strength.

Facebook, Instagram and Snapchat declined to comment on the eMarketer figures.

One section of Snapchat is also perceived among marketers as a potential haven from the amateur posts that define much of social media, created by users or aspiring internet stars rather than by professionals at media companies.

One of the ways that advertisers said Snapchat has distinguished itself is the app's "discover" tab, a prominent section of the app that spotlights short videos from outlets such as ESPN or the New York Times.

Snapchat chooses which outlets to work with, giving advertisers some assurance their video ads will run adjacent to professionally developed shows, not less predictable user-generated content.

"Snapchat can provide a highly controlled environment for advertisers to reach an audience," said Nick Cicero, chief executive of Delmondo, a firm that advises corporate brands on social media advertising.

Instagram has an "explore" tab with some professional content but no equivalent of Snapchat's "discover" tab. Instagram's sibling app Facebook has a "watch" tab that is more similar but is less than six months old.

Instagram and Snapchat, both built around the smartphone camera, have been locked in a rivalry that heated up in 2016, when Instagram copied the popular Snapchat feature known as "stories." The feature allows people to post photos and video that disappear after 24 hours.

Advertisers are rooting for Snapchat and for Twitter Inc (>> Twitter Inc) to succeed, Shapiro added, so that they do not need to rely so much on the largest internet advertising platforms, Facebook and Alphabet Inc's (>> Alphabet) Google.

Interest in Facebook is waning among young Americans, eMarketer said in its note on Monday, estimating a 5.8 percent decline this year in Facebook U.S. users aged 18 to 24 years.

Still, Snapchat remains behind Instagram in some features that advertisers want. A business cannot, for example, create a fixed profile page on Snapchat to host photos and collect a data-rich list of fans the way it can on Instagram.

Business pages make Instagram a "mobile visual shop," Facebook Chief Operating Officer Sheryl Sandberg said last month, adding that two-thirds of visits to Instagram business profiles were from people who do not follow them.

In other ways, though, Snapchat is catching up. The company has in the past year transitioned to a self-serve ad system with pricing based on an auction, which marketers said has made buying much easier especially for smaller advertisers. Facebook and Instagram already have such systems.

(Reporting by David Ingram; Editing by Peter Henderson and Lisa Shumaker)

By David Ingram

Stocks treated in this article : Facebook, Alphabet, Snap Inc, Twitter Inc

ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 0.86% 2830 Delayed Quote.60.08%
FACEBOOK INC 1.40% 348.53 Delayed Quote.25.64%
JUST GROUP PLC 1.52% 93.4 Delayed Quote.31.62%
ONE STOP SYSTEMS, INC. -0.48% 5.225 Delayed Quote.31.50%
SNAP INC. 1.23% 78.88 Delayed Quote.56.98%
TWITTER, INC. 1.79% 65.255 Delayed Quote.18.65%
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Analyst Recommendations on FACEBOOK INC
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Financials (USD)
Sales 2021 120 B - -
Net income 2021 40 634 M - -
Net cash 2021 79 290 M - -
P/E ratio 2021 24,3x
Yield 2021 -
Capitalization 968 B 968 B -
EV / Sales 2021 7,43x
EV / Sales 2022 6,02x
Nbr of Employees 63 404
Free-Float 84,0%
Chart FACEBOOK INC
Duration : Period :
Facebook Inc Technical Analysis Chart | FB | US30303M1027 | MarketScreener
Technical analysis trends FACEBOOK INC
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
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Mean consensus BUY
Number of Analysts 49
Last Close Price 343,21 $
Average target price 416,29 $
Spread / Average Target 21,3%
EPS Revisions
Managers and Directors
Mark Elliot Zuckerberg Chairman & Chief Executive Officer
David M. Wehner Chief Financial Officer
Michael Todd Schroepfer Chief Technology Officer
Atish Banerjea Chief Information Officer
Sheryl Kara Sandberg Chief Operating Officer & Director
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