Key Takeaways Facebook Q4 2020 Report: Ad revenues continue to grow

The Facebook Q4 2020 Report highlights the significant updates for brands and advertisers that gives an overview of the platform with information such as the growing user base.

The report highlights that Facebook experienced a slight increase in daily and monthly active users since the last quarter, despite the containment measures beginning to be relaxed around the world, an occurrence that was speculated to stall the growth of the user base in Q4 2020.

Advertising revenue continues to grow despite initiatives such as #StopHateForProfit. The CFO of Facebook outlines the shift towards online commerce and the shift in consumer demand towards products and away from services, as the broad economic trends that boosted Facebook's advertising revenue.

While the quarter has been decently well for Facebook, the developing European regulations, privacy changes on iOS that will impact ad targeting, FTC looking to separate Instagram & WhatsApp from Facebook, and privacy concerns regarding WhatsApp in India, continue to pose an uncertain impact on Facebook.

Also Read: Phone numbers of six million Indian Facebook users exposed & up for sale

Here are the key highlights:

• Facebook daily active users (DAUs) were 1.84 billion on average for December 2020, an increase of 11% year-over-year

• Facebook monthly active users (MAUs) were 2.80 billion as of December 31, 2020, an increase of 12% year-over-year

• Family daily active people (DAP), was 2.60 billion on average for December 2020, an increase of 15% year-over-year

• Family monthly active people (MAP), was 3.30 billion as of December 31, 2020, an increase of 14% year-over-year

• Advertising Revenue stood at 27,187 Mn USD for three months ended December 31, and 84,169 Mn USD for year ended December 31

• The two broad economic trends that propelled Facebook growth, may not prevail in the upcoming year and may serve as a headwind for the ad revenue

• Facebook expects the upcoming iOS changes to have an impact on ad targeting in the first quarter

• The platform acknowledges the European regulatory developments, around the viability of transatlantic data transfers, its impact remains uncertain as of now