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:
- Since its notoriously botched IPO on May 18, Facebook stock has dropped almost 50%, falling below $20 for the first time.
- Customer satisfaction is down 8%, according to the American Customer Satisfaction Index, receiving a score of 61 on a 100 point scale. For some context, rival Google+ scored a 78.
- Over the last six months, Facebook’s user base dropped 1.7% in the US
- Facebook reported to the SEC that about 83 million accounts, or 8.7% of its monthly active users, are duplicate, misclassified or “undesirable.”
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.
-Matt Winn, Volusion