There are three signs of the weakening of a business in the field of social networking :
- Young people are moving to another network. Generation’s Y&Z peoples migrations
- There is less content from your friends and more commercial content.
-Business performance / stock status — Facebook has revenues of more than 100 billion with 3 billion users — this is not bad but is in decline in Engagement which is the most important KPI . Facebook’s profit has been cut in half over the past year and the stock is in a crazy dive.
There are a number of threats on the Facebook group :
1 . A significant reduction in Facebook’s ability to target users — Apple is already significantly limiting Facebook’s actions — banning tracking Apple’s customers — (95 percent do not allow apps to track them). So far Facebook’s targeting has been excellent. Now at Apple there is no option — the total “cost” for Facebook is a loss of $ 10–15 billion . In 2023, targeting capacity will be reduced more deeply.
2. TikTok is getting stronger and reaches 1.5 billion users. Now it is already known that Facebook has inferiority in terms of algorithm. TikTok manages to bring value to everyone who comes to its platform . Even if he has no idea who to follow and even if he does not have a community. TikTok leads in parameters such as engagement and considers to be more loveable brand than Facebook. This is the reason why the younger users move to TikTok. A well-known rule in the field of media is that the first people to leave you is the segment that you need most (young people). And after them other segments will leave too. Facebook is marching towards the “other segment” stage — the older audience.
3. Because of the targeting problem — less effective campaigns — abandonment of the main growth engine begins — small businesses are looking for new marketing paths.
4. The regulator has marked Facebook as a negative factor that needs to be weakened.
5. A crazy investment in the metaverse project that hasn’t really become something fundamental in the world. It has around 100,000 users — lower than all facebook’s predictions.
To maintain the leadership Facebook group will need to address the following issues
- Think about new revenue models — If your business is based primarily on advertising revenue , yu need to remember that the advertising market is facing a variety of changes that will make this revenue model problematic. Currently, nearly 90 percent of Facebook’s revenue comes from advertising
- If you are not a Loveable brand (yes, there is such a thing) your chances of success are less high. Facebook is totally an unloved brand: Consumers don’t like Facebook’s control of their data, advertisers don’t like their dependence on Facebook, media companies hate the fact that Facebook took their ad business, the regulator doesn’t like Facebook’s behavior in the area of our data privacy, and countries don’t like Facebook because it doesn’t pay enough taxes. In short — with all this antagonism — good will not come out of it.
- If you do not have a billing relationship with customers — it will be difficult for you to hold on to them and develop a real relationship with them based onfirst party data. Facebook doesn’t really have a billing relationship with customers right now. While the company is trying to make sensible moves through a strategic application called Facebook/Instagram Shop, including cooperation with Shopify, it is still unclear to what extent Facebook’s partners in this area will agree to “spread” from all their assets (= basically data).
