
Facebook have released their latest quarterly statement and damn, is it impressive! With 1.39 billion active users (up 13% on last year) the social media giant is carving the way for even bigger profits than ever before. In the last quarter alone Facebook reported a profit of $701 million, which is a 34% increase on this time last year.
As I’m sure you know, Facebook makes most of its money from the use of advertising, making it an expensive social network for businesses. Their advertising revenue increased by a massive 53% to $3.59 billion, with almost 70% of that coming from mobile clicks.
Mark Zuckerberg declared, “We got a lot done in 2014″ (no shit, Sherlock!) with their total profits for the year reaching $2.9 billion, an increase of almost double that of 2013.

While Facebook have been busy earning money they certainly haven’t cut down on spending. Per each dollar of revenue made, profits have actually decreased from 44% to 29% thanks to Facebook investing heavily into marketing and research and development. Research and development costs have tripled to $1.1 billion just in this quarter, with a focus on Instagram, WhatsApp, Oculus Rift, in-house messaging and video.
With a huge amount of users logging on via mobile devices, Facebook has focused primarily in providing relevant content for individuals. Be this in advertising or organic content, the usability and integration of this content on mobile platforms has been paramount to Facebook’s success. Clearly looking at the results, what they’ve been doing is working and a huge part of that has been video.
Last summer, Facebook reported that video was some of its most engaging content, with users viewing three billion videos daily. With that in mind, videos directly uploaded to the site get more priority over content such as pictures and status updates. As a business, we can see ourselves how much better video content is performing as opposed to traditional content. The reach is greater and it’s an easier way for people to digest information. Directly uploading video is important to Facebook because it keeps users on their site much longer, however, allowing the likes of YouTube links to be watched within the platform is also beneficial but certainly less so. Direct uploads tend to load faster and users are more likely to watch paid video content when it’s hosted within Facebook.

While a lot of videos that may be popping up on your news feed daily come from the likes of The Lad Bible, Facebook reported that, per person, video posts have risen by 75% in the last year. Whatever the content, making it in video form is especially important for business and that is very well demonstrated, again, by The Lad Bible – a business made almost entirely from recycled content.
Facebook’s algorithm can easily be amended in order to prioritise video by simply recognising the format, however it has no way to understand what the video is showing, therefore whatever your content, it’s definitely worth investing to make it in video form. If you do still want to pay for Facebook advertising, be aware that too much text in your videos will be rejected in the same way as images.
So to summarise, Facebook continues to invest heavily in targeted content with a strong emphasis on video. If you can afford to create video content that proves to be engaging, your business could flourish on Facebook. It doesn’t even need to be of particularly high quality, if you can make relatable or funny video content, it will automatically be given more gravity on news feeds and from there hopefully much higher user engagement.
