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Zuckerberg says the future is sharing via 100B messages & 1B Stories/day

The News Feed won’t sustain Facebook forever, and that’s scaring investors. Today on Facebook’s earnings call, Mark Zuckerberg stressed that sharing is shifting to private chat, where people send 100 billion messages per day on Facebook’s family of apps, and Stories, where he says people share 1 billion of these slideshows per day (though it’s unclear if that includes third-party apps like Snapchat).
But that means Facebook will have to realign its business towards these mediums where monetization is more complex and it has less experience. The result of Zuckerberg’s comments was a reversal of Facebook’s initial 2 percent share price gain after earnings were announced that dragged it down to a 3.5 percent loss. That was only reversed when Zuckerberg said Facebook would reduce limits on video advertising, pushing shares up 3 percent in after-hours trading.
Facebook’s year-over-year revenue growth has already slowed from 59 percent in Q3 2016, to 49 percent a year ago, to 33 percent now as Zuckerberg admits it’s hitting saturation in developed markets, plus it’s running out of News Feed space. Now it will both have to deal with the sharing medium shift, and that the new users it’s adding in the Asia-Pacific and Rest Of World regions earn it 10X less than users in North America.

Facebook shares climb despite Q3 user growth and revenue

Battling iMessage
In messaging, Zuckerberg says “People share more photos, videos, and links on WhatsApp and Messenger than they do on social networks.” He sees Facebook’s position as strong, saying “We’re leading in most countries”, though that’s mostly in the developing world Android market where people choose their own default messaging app. “Our biggest competitor by far is iMessage. In important countries like the US where the iPhone is strong, Apple bundles iMesssage as the default texting app, and it’s still ahead” Zuckerberg notes.
The “bundled” language harkens back to to antitrust lawsuits against Microsoft for bundling computers with Internet Explorer. With Apple CEO Tim Cook constantly harping on the poor privacy practices of ad-supported companies like Facebook, Zuckerberg might be gunning to draw regulator attention to iMessage.

Facebook is starting to more aggressively monetize Messenger through inbox ads, and its now selling enterprise tools to brands on both Facebook and WhatsApp that let them pay to ping users. But Facebook risks its chat apps seeming annoying or intrusive if it packs in too many ads or allows too much Message spam. Users could stray to status quos like iMessage and Android Messages if it puts monetization above the user experience.
Dominating Snapchat
On Stories, Zuckerberg says Facebook is doing even better. Over 1 billion people use its Stories features across Facebook, Messenger, Instagram, and WhatsApp each day, compared to 186 million daily users on Stories inventor Snapchat as a whole. Stories are where the majority of Facebook sharing growth is happening, and Facebook Stories are gaining momentum after a slow and buggy start. That’s why Zuckerberg never mentioned Snapchat, and instead talk about YouTube as its primary competitor in video.
The problem is that creating attractive video ads, especially vertical full-screen ones for Stories, is beyond the capability of the long-tail on small businesses that have fueled Facebook’s News Feed ad revenue. Users often rapidly skip through Stories ads, and Facebook currently doesn’t offer unskippable ones like Snapchat. Many people don’t think to tap or swipe up to visit a link from a Story, or simply don’t want to lose their place in ways that didn’t happen on desktop or even mobile feed ads.

Chasing YouTube
Beyond Stories, Facebook salvaged its after-hours share price by discussing how it plans to show more video, and therefore more of its lucrative video ads. Back in January, Facebook admitted its Q4 user count had declined and revenue might stumble in part because it had decided to show people fewer viral videos that they watch passively. This came as part of its drive for Time Well Spent. But now, Zuckerberg says that Facebook has cracked the code for how to make passive video consumption a positive experience, so Facebook will lift some limits:
“People really want to watch a lot of video. To a large degree we’ve had to rate limit its growth, and we need to do the things so we can stop limiting it. The things that have caused us to limit it are on the one hand, when we see passive consumption of video displacing social interactions . . . We needed to figure out a way that video can grow but people can also keep on interacting and doing what they tell us that they uniquely want from Facebook. And now I think we’re starting to work through what the formula is going to be so we can take some of those rate limits off and let video grow at the rate that it wants to. I feel that that’s a very exciting opportunity ahead.”
Across Facebook’s other products, Zuckerberg noted that 800 million people now use Marketplace, its Jobs feature have helped people find 1 million jobs, and its birthday fundraisers have raised $300 million alone this year. But it will be teaching advertisers how to effectively create sponsored messages and Stories ads that will define whether Facebook’s revenue keeps growing.

Facebook shares climb despite Q3 user growth and revenue

Zuckerberg says the future is sharing via 100B messages & 1B Stories/day

Facebook Messenger internally tests voice commands for chat, calls

Facebook Messenger could soon let you use your voice to dictate and send messages, initiate voice calls and create reminders. Messenger for Android’s code reveals a new M assistant button atop the message thread screen that activates listening for voice commands for those functionalities. Voice control could make Messenger simpler to use hands-free or while driving, more accessible for the vision or dexterity-impaired and, perhaps one day, easier for international users whose native languages are hard to type.

Facebook Messenger was previously spotted testing speech transcription as part of the Aloha voice assistant believed to be part of Facebook’s upcoming Portal video chat screen device. But voice commands in the M assistant are new, and demonstrate an evolution in Facebook’s strategy since its former head of Messenger David Marcus told me voice “is not something we’re actively working on right now” in September 2016 onstage at TechCrunch Disrupt.
The prototype was discovered by all-star TechCrunch tipster Jane Manchun Wong, who’d previously discovered prototypes of Instagram Video Calling, Facebook’s screen time digital well-being dashboard and Lyft’s scooter rentals before they officially launched. When reached for comment, a Facebook Messenger spokesperson confirmed to TechCrunch that Facebook is internally testing the voice command feature. They told TechCrunch, “We often experiment with new experiences on Messenger with employees. We have nothing more to share at this time.”

Messenger is eager to differentiate itself from SMS, Snapchat, Android Messages and other texting platforms. The app has aggressively adopted visual communication features like Facebook Stories, augmented reality filters and more. Wong today spotted Messenger prototyping augmented reality camera effects being rolled into the GIFs, Stickers and Emoji menu in the message composer. Facebook confirms this is now in testing with a small percentage of Messenger users.

Facebook has found that users aren’t so keen on tons of bells and whistles like prominent camera access or games getting in the way of chat, so Facebook plans to bury those more in a forthcoming simplified redesign of Messenger. But voice controls add pure utility without obstructing Messenger’s core value proposition and could end up getting users to chat more if they’re eventually rolled out.

Facebook Messenger internally tests voice commands for chat, calls