Market Trends Analysis: Facebook Revenue and User Growth

This report analyzes the market trends of Facebook's revenue and user growth from 2013 to 2016. It utilizes statistical analysis, including mean, median, mode, and regression analysis, to identify the relationship between user growth and revenue. The report also includes a forecast for the next two years based on historical data and trend lines. The findings suggest a strong positive correlation between user growth and revenue, indicating a promising future for Facebook's advertising business.

Market Trends
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Table of Contents
PART A...........................................................................................................................................3
Task 1..........................................................................................................................................3
Task 2..........................................................................................................................................6
Part B..............................................................................................................................................8
Task 1..........................................................................................................................................8
Part C..............................................................................................................................................9
Task 1 (Task 2)...........................................................................................................................9
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PART A
Task 1
Statistical analysis of Data and it impacts on the Organisation.
The use of social marketing site has become a huge platform for the advertisement. The
increasing popularity along with the wider reach has led the companies to look for the ways to
advertise theirs on the social platforms. There is continuous growth in the visit and usage of the
social networking sites by the people. The income from the advertisement of the social sites has
also increased tremendously when compared to previous years (Redsicker, 2012). The Facebook
has also seen a growth in the revenue earned from per user along with the growth in the user. The
increase in the trend line and a positive growth in the market towards the social media
advertisement have led to increase in the revenue that is being earned by the organization. The
continuous growth in the number of users has led to a boom in the revenue also. The offline and
online sales and purchase involved facebook for about 52% in 2015 which was earlier only 36
percent (Hainla, 2018). There is an increase in the small business Facebook pages being more
than 50 million increasing the revenue. The trend line and market analysis show an increase in
the average revenue and profitability. The future looks more promising with increased usage and
viability of the social media globally.
Statistical Data
Yea
r
Facebook average
revenue per year $
Number of users
(In million)
2013 6.81 1228
2014 9.45 1393
2015 11.96 1591
2016 24.94 1860
3

(Figure – Facebook average revenue per user)
(Source – Marketing charts, 2017)
It can be interpreted that there is continuous growth in the global revenue earned by the
company.
4

(Figure – Facebook number of user quarterly)
(Source – Statista, 2018)
5

Task 2
Analysis of the data and how results achieved can assist in the decision making of the
organizational process.
The results achieved can be used in the decision making regarding the growth and expansion.
The organization can look forward to making the platform more accessible and easy to use. The
company can look forward to making development regarding the advertisement technique. Social
media is not only used for the purpose of the advertisement but also in being a platform for the
purchase and selling of various products. The company can use various techniques to increase
the users of the platforms as higher the user higher is the revenue from the users of it. The
organizational process must be as flexible as possible so that the people don’t face any difficulty
in providing their advertisement over the social platform along with the security and safeguard of
the same (Pilcher, 2017). The results achieved with the analysis of data and help the managers to
look forward to the ways in which they can avail the opportunities and take the benefit of it
available in the best possible way. They can plan and make policies regarding the achievement of
the goals and objective with the help of analysis of the data. The data shows that there is an
increase in the number of users and have relationships to the facebook average revenue per year.
Statistical Data
Year Facebook average
revenue per year $
Number of users
(In million)
2013 6.81 1228
2014 9.45 1393
2015 11.96 1591
2016 24.94 1860
Mean 13.29
Median 10.705
Mode #N/A
Corelatio
n 0.95
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Regression Statistics
Multiple R 0.95122038
R Square 0.90482021
Adjusted R Square 0.85723031
Standard Error 3.04027331
Observations 4
ANOVA
df SS MS F
Significance
F
Regression 1 175.7408764
175.7408
8 19.012864 0.048779622
Residual 2 18.48652364
9.243261
8
Total 3 194.2274
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -29.418476 9.911942073 -2.967983 0.0972444 -72.06612042 13.22916882 -72.06612 13.22916882
X Variable 1 0.0281347 0.006452359 4.3603743 0.0487796 0.00037244 0.055896962 0.00037244 0.055896962
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Part B
Task 1
Develop forecast for the organization.
The forecast is conducted on the basis of the historical data and trend line. The forecast is based
on the linear equation made on the basis of previous year results and data (Hohle, and Teigen,
2015).
Statistical Data
Yea
r
Facebook average
revenue per year $
2013 6.81
2014 9.45
2015 11.96
2016 24.94
2012.5 2013 2013.5 2014 2014.5 2015 2015.5 2016 2016.5
0
5
10
15
20
25
30
f(x) = 5.69 x − 11449.215
R² = 0.833458616034627
Facebook average revenue per year $
Facebook
average
revenue per
year $
Linear
(Facebook
average
revenue per
year $)
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It could be seen that the trend line is upward moving in the future also. There will be growth and
increase in the revenue of the organization. There is an upward slope in the revenue earned by
the organisaion.
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Part C
Task 1 (Task 2)
Visual representation.
Slide 1
Title Slide
Slide 2
10

The topics to be covered in the presentation
Slide 3
11

The presentation consists of an analysis of the current trend and statistical analysis depending
upon the data. There is also forecasting of the next 2 year depending upon the historical data that
is available followed by the recommendation and findings.
Slide 4
The data is collected from the various sources. The statistical data used for analyzing the trend
related to the revenue that is being earned by the facebook per year. The number of users (in the
million) are also considered for purpose of statistical analysis.
Slide 5
12

The central tendency includes the mean median mode calculated on the basis of the collected
data. The mean of the company came at 13.29 and median as 10.95. It can also be stated that
there is a relation between the number of users and the revenue per year.
Slide 6
13

The forecast is based on the various techniques which include the analysis on the basis of the
previous year. The trend line depicts that there will be a continuous increase in the revenue
earned per year and keeps on increasing.
Slide 7
14

There exist a relationship between the users on the facebook and revenue earned. There can be
seen a growth and an upward positive slope in the revenue of the company. It can be seen that
there are new opportunities in the social media advertisement and better future prospect.
Slide 8
15

It can be concluded that there is an increase in the users of social platform resulted in an increase
in the revenue of the organization. It can be concluded that the social platform has a wider reach
and viability with positive future and prospect
Slide 9
16

The company must look forward to attracting the new users by easing the process of advertising
on the social platform. They must also look forward to safeguarding from various threats and
cyber attacks so that there is an increase in the advertising process.
Slide 10
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References
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References
 Marketing charts, 2017. Facebook’s ARPU in the US and Canada has Doubled in the Past
2 Years. Marketing charts. [Online]. Also available at
https://www.marketingcharts.com/demographics-and-audiences-79333. [Accessed on 13-
03-2018]
 Statista, 2018. Number of monthly active Facebook users worldwide as of 4th quarter
2017 (in millions). Statista. [Online]. Also available at
https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-
worldwide/. [Accessed on 13-03-2018]
 Hainla, L., 2018. 21 Social Media Marketing Statistics You Need to Know in 2018.
Dreamgrow. [Online]. Also available at https://www.dreamgrow.com/21-social-media-
marketing-statistics/. [Accessed on 13-03-2018]
 Redsicker, P., 2012. 8 Content Marketing Trends for B2B. Social Media. [Online]. Also
available at https://www.socialmediaexaminer.com/8-content-marketing-trends-for-b2b/.
[Accessed on 13-03-2018]
 Pilcher, J., 2017. What Are The Top Digital Marketing Trends and Priorities for 2017?
The financial brand. [Online]. Also available at
https://thefinancialbrand.com/63985/digital-marketing-trends-strategies/. [Accessed on
13-03-2018]
 Vilamová, Š., Miklošík, A., Kozel, R., Samolejová, A., Piecha, M., Weiss, E. and
Janovská, K., 2015. Regression analysis as an objective tool of economic management of
rolling mill. Metalurgija, 54(3), pp.594-596.
 Hohle, S.M. and Teigen, K.H., 2015. Forecasting forecasts: The trend effect. Judgment
and Decision making, 10(5), p.416.
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