FRIDAY NEWS ROOM #1 – Facebook, Google, Snapchat & Glovo
– 27th July – FRIDAY NEWS ROOM
Read on for my 4 hand picked headlines of the week!
#Social Media #GAFA #Snapchat #Glovo #Fundraising #Fine #losses #marketplace
News #1 Shocking News from Facebook
Following the announcement of poor quarterly results, the action of Facebook fell on the stock market to the point that $ 120 billion of capitalization melted in less than two hours.
After closing on Wall Street, Facebook’s share plunged 20%, a significant drop due to the announcement of disappointing results in the second quarter.
Turnover, it is $ 13.2 billion while markets expected the latter to reach $ 13.4 billion. Nevertheless, net profit rose 31% to $ 5.1 billion, one of the few results of the lot to be slightly above expectations.
The number of users disappoints
In addition to these first results, it is also the number of users that appears below market expectations. Where analysts predicted a monthly active user number of 2.25 billion,
Facebook has only reached 2.23 billion. For daily active users, growth increased by 11% to 1.47 billion, while audience growth was 13% in the first quarter. In Europe, the social network also saw its first decline in the number of active users, from 377 million to 376 million, says TechCrunch.
In the United States and Canada, the number remained at 241 million, the same as in the fourth quarter of 2017, when it stagnated at 239 million.
As previously explained by Facebook CEO Mark Zuckerberg, the number of users was impacted by the entry into force of the GDPR in May 2018.
Expenses were also higher than before, so that they jumped 50% to $ 7.4 billion. As Facebook Finance Director Dave Wehner explained, this should continue in the coming months: “We expect the increase in spending to be higher than the turnover.” Information from the group that also contributed to the fall of its stock market.
As for the nature of the expenses, Zuckerberg says: “We invest so much in our security systems that it will start to have an effect on our profitability, we are starting to see it this quarter”. A decision that echoes the scandal Cambridge Analytica, which largely tarnished the image of the social network when the case was brought to light.
News #2 EU condemns Google to pay fine of 4.34 billion euros
These are several years of investigation that result in a new record fine. The European Commission is Google to pay a fine of 4.34 billion euros for abusing its dominant position with its Android operating system. The OS teams on 80% of mobile devices worldwide.
Google is accused of forcing smartphone manufacturers to pre-install Google Search and set it as a default search service on Android devices.
The European Commission also accuses the firm of preventing these same manufacturers from “selling smartphones running under competing operating systems” and of “providing financial incentives to manufacturers and mobile network operators on the condition that they Preinstall exclusive Google Search on their devices. According to AFP.
Google was already subject to a staggering € 2.42 billion in 2017 for promoting Google Shopping as a price comparator in online searches.
Google is calling
In a statement released the following moments the announcement, Sundar Pichai, Google’s CEO, argues that the OS has been involved in the creation of a multitude of brands and manufacturers of phones in the world.
“The phones manufactured by these companies are all different, but have one thing in common: the ability to run the same applications.
This is possible thanks to simple rules that ensure technical compatibility, regardless of the size or shape of the device. No phone manufacturer is obliged to subscribe to these rules. He can use or modify Android as he wishes, as Amazon did with his Fire tablets and TV keys.
The leader adds that it is childishly simple to remove a pre-installed application in Android, with an accelerated animation of 30 seconds to support it.
The firm should appeal the decision of the European Commission.
News #3 Snapchat launches private marketplace to buy advertising on Discover content
Snapchat has announced the launch of a PMP (Private Marketplace) so that advertisers can buy advertising on content published on Discover. On the publishers side, this new tool will allow the media to get in touch with the brands more easily, and to give more value to their inventory.
Through the PMP, advertisers will have access to all targeting and pricing options.
Advertisers will have in France access to the inventory of Cosmo, Vice and Vogue Paris. In the US this novelty concerns Bild, Buzzfeed, Conde Nast, ESPN, Hearst, NBCU, Tastemade, The Telegraph, Vertical, Viacom and Vice. Advertisers who want to buy space on the contents of these media will have to go through the Ads Manager.
Until now, it was complex to buy the inventory of contents Discover, this PMP makes programmatic purchase self-service.
It also allows advertisers to access Snapchat’s “premium” formats without having to go through manual purchase. Discover provides a “safe” environment for brands because the ads do not appear in UGC content, but in media content.
According to figures given by AdAge, the CPM price of the Discover purchase should be around $ 10 CPM, versus $ 3 to $ 5 on conventional spaces. The unskippable format will also be accessible on the PMP.
This announcement reinforces in any case the growing development of Snapchat advertising side. Snap begins to have more sophisticated products, simply accessible via a self-service Ads Manager.
News #4 The Delivery Startup Glovo raises 115 million euros
The Spanish company had already raised 30 million euros last October. It now aims to improve its technologies and gain market share internationally.
The young Spanish sprout is about to play with the big ones. The delivery specialist start-up, Glovo, has announced that it has raised 115 million euros in Series C. The Japanese e-commerce site Rakuten as well as the Seaya Ventures and Cathay Innovation funds are part of this new round. of table.
The start-up that first developed in Spain and Italy by offering food delivery but also non-food orders, such as sandals, tablets, soap, landed in France in June 2016. And among its Parisian partners restaurants O’Tacos, Vapiano, Three Times Plus Chilli or Chipotle.
These new funds will allow the start-up, founded by Oscar Pierre and Sacha Michaud, to optimize its platform, improve technological resources and hire a hundred engineers in the coming months.
“We take technology seriously, but we have not developed as much in this area as we wanted,” admits Oscar Pierre. “We have a team of 35 engineers today, and we need to improve our algorithms so that we can deliver all types of orders, not just food. Glovo intends to rely on new engineers to develop a major technology hub in Spain.
A wider offer
“The idea of being able to deliver everything in a very short time, it motivates a lot of people to download our app,” continued Oscar Pierre. “But what we’ve learned in the last four months is that food is the main category to develop. Once a user has ordered two or three times, it is at this point that we start to highlight the other categories. “
Opportunities in Latin America
After completing a 30 million euro fundraising round last October, already led by Cathay Innovation and Rakuten, Glovo soon expanded its presence in Europe as well as in Turkey, Egypt, Argentina and Brazil. The start-up is now operational in some fifteen countries and has accumulated nearly 2 million orders.
One of the big markets that the company hopes to exploit: Latin America. “We see that we can develop very quickly if we are the first to arrive, the first to sign contracts with large brands,” enthuses Oscar Pierre.