Facebook to look to Virtual Reality
With Facebook’s business continuing to boom and revenues rising year on year, the company is looking at significant spending on R&D for virtual reality.
CEO Mark Zuckerberg said, “The reason we’re excited in this space is the continued progression of people getting richer and richer ways to share what’s on their mind. Ten years ago it was text. Now it’s mostly visual and photos, then primarily video and we’re seeing huge growth there, but that is not the end of the line. Immersive 3D content is the obvious next thing after video.”
Facebook’s user growth though, is starting to slow. But this shouldn’t be surprising given its immense size. It has a daily active base of 968 million, which is a 17% increase. The previous year, users grew by 19%. And although growth in mobile has decreased by 10%, there is an increase in engagement however, with the average user spending more and more time with the service.
With greater levels of engagement, it is obvious that video advertising was a big driver of revenue growth, especially with the very specific targeting that Facebook is able to do. How Facebook plans to drive virtual reality advertising remains to be seen. Let’s hope it won’t be too distracting.