Mark Zuckerberg, CEO of Facebook, called the nascent Metaverse the “successor to the mobile Internet” and described “groundbreaking” changes that will occur in the company’s third quarter on the social media platform and its various holdings Merits Call Monday (October 25th).
Pointing out the importance of augmented reality (AR) and virtual reality (VR) to the company’s vision of more vibrancy in connected experiences in the near future, Zuckerberg said the company expects “to make significant changes to Instagram and Facebook over the next year to “Keep leaning on video and make reels a more central part of the experience.”
Providing solid indications of the platform’s plans to transform the connectedness itself, he said, “With all the tools we have today, we still can’t feel like we’re right with the people we care about when we are physically separated. We cannot teleport as holograms to be in the office immediately without having to commute, or at a concert with a friend or in your parents’ living room to meet us. “
He also confirmed reports that from the fourth quarter of 2021 onwards, the company will begin reporting Facebook Reality Labs (FRL) and its family’s financial data separately from social apps (Facebook, Instagram, WhatsApp), a slump of $ 10 billion. Dollar on full year 2021 operating profit suggests a result.
“Our three product priorities remain our focus on developers, trading and building the next computing platform,” said Zuckerberg, naming the platform Roll on Facebook Video initiative – a shot across the bow from competitors like TikTok and Snapchat – “a primary driver of engagement” and an important innovation focus in the next year and in the future.
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Younger users in the spotlight
On a conference call of unprofitable news, Zuckerberg said that Facebook is “retooling” to serve “young adults” rather than optimizing for the greater number of older people. Admitting that the shift in focus “will likely mean the rest of our community will grow more slowly,” he said, the result will be “our services to younger adults will become stronger”.
He named retailing a top priority and said: “Helping people discover new products they are interested in and reaching customers in our apps”. [is] will open up many possibilities. “
Partly in response to changes in Apple’s data policy that “make e-commerce and customer acquisition on the web less effective,” he said, “solutions that enable companies to set up shops directly in our apps are becoming increasingly attractive and important . “
Changes to Facebook ads that “dynamically link to either a company’s website or their shop on our platform” are designed to help YouTubers and online sellers grow across the portfolio.
Zuckerberg said Facebook will roll out new commerce tools in the fourth quarter, starting with its largest online stores and sellers, adding, “Our plan is to then scale these solutions more widely in 2022.”
Also read: Facebook name change to reflect metaverse movement
Approaching the Metaverse Moment
Zuckerberg reverted to Facebook’s Metaverse plans several times during the call, describing them as “critical to our mission because it gives a sense of presence, as if you were right with someone else. This is the holy grail of the online experience. “
Over the next decade, according to Zuckerberg, the pursuit of immersive AR / VR experiences powered by more sophisticated artificial intelligence (AI) and machine learning (ML) will be “a massive increase in the creative economy and the amount of digital goods and Effect trade. If you are in the metaverse every day, you need digital clothes, digital tools, ”he said, adding that the goal is to“ support the metaverse, reaching 1 billion people and hundreds of billions of dollars in digital commerce every day . ”
While Facebook recently unveiled its EssilorLuxottica Ray-Ban stories Smart glasses, Zuckerberg said: “It’s not about developing a single eyewear product. There is an entire ecosystem that will encompass several generations of AR / VR wearables and matching new digital experiences.
On the profit front, Facebook reported profits of $ 9.2 billion on revenue of $ 29 billion in the third quarter, up 35% year over year. According to Chief Operating Officer Sherly Sandberg, Apple’s iOS 14 update “also faced headwinds for others in the industry, major challenges for small businesses and favored Apple’s own advertising business.”
Sandberg said Apple’s changes decreased ad targeting opportunities for Facebook, “increasing the cost of increasing results for our advertisers,” adding that “measuring those results has become more difficult”. She said Facebook’s ad conversions are now not being adequately reported.
In response, she said that Facebook is “developing commerce tools to help businesses reach more new customers and generate more sales.”
Sandberg also noted that “the strong e-commerce growth in recent quarters, driven in part by the acceleration of digital transformation, is now easing” as the effects of the pandemic wear off and consumers make more physical purchases.
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