Meta’s ad revenue rose 23.8% in the last quarter of 2023 compared to the year-ago period, beating expectations.
Advertising revenue for the fourth quarter of 2023 was $38.7 billion compared to $31.3 billion for the same period in 2022. This success helped drive Meta’s total revenue to grow 25% year over year from $32,200 million in the fourth quarter of 2022 to 40.1 billion in the fourth quarter of 2023.
Daily active users. Meta’s Q4 2023 performance also showed impressive growth in user engagement.
Family daily active persons averaged 3.19 billion in December 2023, up 8% year-on-year. As of December 31, 2023, family monthly active persons was 3.98 billion, an increase of 6% year-on-year. Facebook’s daily active users averaged 2.11 billion in December 2023, up 6% year-on-year. Facebook’s monthly active users were 3.07 billion as of December 31, 2023, up 3% year-over-year.
Year of AI. Looking ahead, Meta plans to spend between $30 billion and $37 billion in capital expenditures, $2 billion more than originally planned, with a focus on AI investments. The revised range reflects the company’s evolving understanding of AI capability needs for future basic research and product development.
Why we care After a difficult year for ad revenue on rival platform X, Meta is gaining popularity among advertisers. Sustained growth suggests success on the platform, making Meta’s advertising products worthy of consideration. However, increased popularity may result in higher ad prices. Advertisers should weigh the effectiveness of the platform against potential cost changes.
What Meta says. Mark Zuckerberg, founder and CEO of Meta, said in a statement:
“We had a good quarter as our community and business continue to grow.” “We’ve come a long way in our vision to advance AI and the metaverse.”
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About the author
Nicola Agius is Search Engine Land’s paid media editor after joining in 2023. She covers paid media, retail media and more. Prior to that, she was Director of SEO at Jungle Creations (2020-2023), overseeing the company’s editorial strategy for various websites. He has more than 15 years of experience in journalism and previously worked at OK! Magazine (2010-2014), Mail Online (2014-2015), Mirror (2015-2017), Digital Spy (2017-2018) and The Sun (2018-2020). He also previously partnered with SEO agency Blue Array to co-author the Amazon best-selling book Mastering In-House SEO.
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