Facebook Continues Its Aggressive Push
Facebook has certainly been busy over the last several weeks.
First, Facebook announced it acquired gif search engine GIPHY for $400 million. Last week, Facebook announced it was making a major push into e-commerce as the company introduced its new Shops feature.
In what could be viewed as its attempt to take on YouTube, Facebook's Instagram announced yesterday a new content monetization feature for creators on IGTV.
After hinting at it previously, Instagram announced a new revenue sharing program on IGTV that will see Instagram and creators share the "industry standard" 55% advertising cut.
Starting next week, the ads will begin appearing for 200 approved IGTV creators and will include advertising partners such as Puma, Ikea and Sephora. Instagram's intention is to ultimately expand the program to additional creators around the world.
Citing a 70% increase in views from February to March on IGTV, Instagram will also introduce "badges" during videos in which viewers can have their name and comment featured more prominently. Instagram won't initially take a cut of revenue, but will begin to do so as the function expands to additional users.
The move is not surprising, as Instagram generated about $20 billion in advertisements for Facebook last year, which amounts to more than 25% of Facebook's total revenue.
"We’re committed to making IGTV an effective and brand-safe space for advertising, so that we can help creators make money and connect people with great products," Instagram said.
Instagram is already planning on how it will integrate these features into its recently announced push into e-commerce with Shops.
"Over the coming months we’ll expand shopping access to more creators who want to sell their own merchandise. We’re also expanding access to Brand Collabs Manager, which helps creators find potential brand partners," Instagram said.
It's clear that Facebook is trying to capitalize further on the content and products that influencers are cashing in on. With Facebook now taking direct aim at Amazon and Google's YouTube, it may be what propels Facebook towards a $1 trillion valuation, which Amazon has exceeded and Google is on the verge of surpassing.
Mortgage strength continues. Mortgage applications to purchase a home jumped 9% last week, the sixth-consecutive weekly increase, according to the Mortgage Bankers Association’s seasonally adjusted index. Mortgage applications to purchase a home now stand 9% higher than the same period last year and 54% higher than early April. With the rate on a 30-year fixed-rate mortgage continuing to sit near record lows, refinance activity continued to slow last week, but remains 176% higher than the same period last year.
More layoffs at Boeing. Boeing announced it will lay off more than 6,000 employees as the company continues to struggle with demand for its airplanes. Boeing, which has more than 160,000 employees, previously stated its goal of reducing headcount by 10%. "Following the reduction-in-force announcement we made last month, we have concluded our voluntary layoff (VLO) program," Boeing CEO David Calhoun said. "And now we have come to the unfortunate moment of having to start involuntary layoffs (ILO)."
The Americas will be hit the hardest. The International Labour Organization (ILO) believes the Americas will be hit the hardest in terms of job losses as a result of COVID-19. The ILO predicts 305 million jobs will be lost globally between April and June. The ILO believes the coronavirus could result in a "lockdown generation" that will force younger individuals to play catch up for the next decade. "Young people are simply going to be left behind, and in big numbers," ILO Director-General Guy Ryder said.
Everyone is eating pizza. Papa John’s said estimated North American same-store sales for May increased by 33.5% after rising 26.9% in April. "In May, for the second straight month, Papa John’s team members and franchisees delivered the best sales period in the company’s history," Papa John’s CEO Rob Lynch said. "We entered the pandemic with strong growth and momentum, and are fortunate that our delivery and carry-out model has enabled us to meet an essential need for high-quality food, safely delivered to consumers’ homes."
Tesla slashes prices. In an attempt to jumpstart demand in North America, Tesla is cutting the prices of its vehicles by as much as 6%. The price of Tesla's entry level sedan, the Model 3, will drop by $2,000 and now cost $37,990. Tesla also announced its Supercharger quick-charging service will no longer be free for customers who purchase the Model S and Model X.