Will Facebook Matter in Five Years?

As talks of potential weaknesses within the social media giant continue to grow, many are wondering what’s to come with the future of Facebook. Read further to learn the latest developments.

To put it mildly, Facebook has been facing a cruel, cruel summer (cue Bananarama, please).

What started off as the most anticipated IPO in history has quickly turned into a dark cloud for the social media juggernaut, with more and more skeptics questioning its future.

Why? Consider the following:

With these unsettling developments stealing more and more tech headlines, the question must be raised: will Facebook matter in five years?

Quite simply, yes.

Let’s put things into perspective here – Facebook is still the largest player in the social media, and continues to expand its presence into new markets. After being available in the US for eight years now, Facebook has reached a saturation point in this country, just like any other wildly popular company would.

Furthermore, the press is arguably pouncing on this story because Facebook is the darling of social media. While the problems that Facebook is facing are definitely worth reporting, you wouldn’t see this type of hoopla with a smaller player like StumbleUpon.

But the main reason that the future is bright for Facebook is also because of the numbers: it has much higher engagement than any other social site. According to ComScore, Facebook users spend, on average, 405 minutes per month on the site, as compared to 63 minutes/month on Pinterest and 3 minutes on Google+. In other words, if advertisers are looking to social media, Facebook is the place to be.

Facebook also has a massive wealth of data that advertisers are salivating to get ahold of. Due to the willingness of users to provide valuable details of their lives, Facebook is able to paint an extremely clear picture of various user segments’ lifestyles. To demonstrate this point, Google recently acquired the widely popular social media marketing platform, Wildfire, with a partially rumored effort to better access Facebook data for its own social advertising purposes.

And despite multiple calls for Facebook to rapidly improve its mobile app, the company still has a huge mobile base, with over 78 million users accessing the platform from their mobile devices on a monthly basis. Once developers find a way to serve relevant mobile ads, expect for things to shift in the right direction for Facebook.

 

At the end of the day, Facebook has a few things it needs to work on, such as its mobile presence, its privacy policy and how it structures Facebook Ads, but the elephant in the social media room isn’t going anywhere anytime soon. While how we interact with Facebook may evolve over time, don’t expect this cruel summer to hold down the platform for long.

Happy selling!
-Matt Winn, Volusion

About 

Matt Winn is Volusion’s Senior Brand Manager, where he helps oversee the organization’s branding and communications efforts. Matt has created hundreds of articles, videos and seminars on all things ecommerce, ranging from online marketing to web design and customer experience. Beyond being a certified nerd, Matt is an avid college football fan, enthusiastic home cook and a self-admitted reality TV junkie.

2 Responses to “Will Facebook Matter in Five Years?”

  1. donatella

    Just like MySpace, Facebook will become irrelevant in 5 years. Their (lack of) privacy and selling of data will catch-up to them at some point. No one – especially the younger demo is pleased with their government relationships and sharing of facial, recognition data and personal info. AND, they have yet to demonstrate longevity or consistency with their ad revenue strategy, or ways in which they plan on monetizing their site for the long term. The fact is, they waited WAY too long before going public. their best days are behind them and I, for one, will find more creative ways to market my store, then simply having a facebook share button and integration strategy. There are SO many new fun and much more interesting sites sprouting up everyday. Unless FB embarks upon an immediate and aggressive campaign to maintain (and build) their business, it’s bye-bye down the road. Just my 2 cents.

    Reply
  2. Daniel

    The biggest issue that it faces is that there is no way to make investors and it’s users happy. Facebook will matter for years to come but with big tech sell offs like Digg and MySpace, Facebook needs to make changes quickly.

    Recently, they have embedded ads into users’ timeline which has already upset users. Facebook’s only real lock is that everyone and their friends are using it. The software is self is easy to duplicate and one wrong move, like charging or putting in more ads, will send users away in droves.

    They are walking a fine line between staying relevant and becoming the next MySpace.

    Reply

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