Beating earnings expectations for its Q2 2021, Facebook Inc registered total revenue of $29.1 billion, a 56 per cent year-over-year increase. Facebook’s record performance was driven by the digital transformation that was accelerated during the pandemic along with the company’s long-term investments in tools and products to help businesses make the shift online. Creators, adding value to Facebook’s business. The company is expected to replicate a similar success in India, achieving a record revenue quarter in the country.
With the nation going into lockdown due to the COVID-19 pandemic, offline businesses instantly switched to online platforms and expanded their presence on social media platforms across social media platforms including Whatsapp, Facebook and Instagram. All the top three social media platforms in the country happen to be Facebook’s product offerings.
“As a vibrant mobile-first nation, the growth of India’s digital economy has been made possible by a strong digital infrastructure, increasing smartphone penetration, and affordable data costs, among others. Over the past year, the pandemic gave further impetus to digital acceleration, and we now, truly are at the cusp of a perfect storm. Small businesses, in particular, have stepped-up and gained digital maturity to connect and better serve their customers where they are. In an everything-from-home context, consumers have spent more time online, translating into enhanced digital consumption,” says Prabhu Ram, Head of Industry Intelligence Group at CMR.
From more than 3.1 billion people globally using Facebook services every month to stay connected as of the quarter ending June 2020, the company has reported 3.5 billion people in the latest quarterly earnings call ending June 2021.
“As we move ahead, India’s digital economy will only grow aided by strong growth in not just Urban but Aspirational India, that is beyond the Tier-II and Tier-III cities and towns. All of this would translate into increased digital ad spends, and that’s where platform companies, such as Facebook, will stand to benefit,” adds Prabhu Ram.
Source: Business Today