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2
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· Posted on
February 21, 2024

Facebook and Instagram’s parent company Meta posted its first revenue decline EVER

Meta has been struggling for the past six months... and now it has posted its first revenue decline.

What's the key learning?

  • Meta has announced profit for April to June this year of US$6.69 billion, a 36% decrease
  • Meta's struggles are part of an overall decline in digital ad spending
  • Meta is relying on the Metaverse to return to exponential growth

👉 Background: We know Meta has been struggling over the last 6 months.

👉 What happened: Now, Meta has announced profit for April to June this year of US$6.69 billion, a 36% decrease on the same time last year. Why? Ad spending is down and competition from TikTok is RIFE.

👉 What else: While Meta's struggles are part of an overall decline in the digital ad industry, it’s a strange position for Meta to be in… because it's only known growth since (kinda like the brainiac at school who has only known success!).

What's the key learning?

💡Growth has become not only an expectation, but almost a right for Meta and its investors... until now.

💡 Rather than reset expectations, Meta is laying a big bet on the Metaverse to return to exponential growth. That’s Meta’s augmented reality and 3D internet project.

💡 Global spending on augmented and virtual reality is expected to rise from$12 billion in 2020 to $72.8 billion in 2024 so it's no wonder that all the big players are jostling to get into the arena.

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