The Guardian reports Facebook loses millions of users as biggest markets peak. It says newer services like Instagram and Path threaten the site’s social media dominance.
In the last month, the world’s largest social network has lost 6m US visitors, a 4% fall, according to analysis firm SocialBakers. In the UK, 1.4m fewer users checked in last month, a fall of 4.5%. The declines are sustained. In the last six months, Facebook has lost nearly 9m monthly visitors in the US and 2m in the UK.
While rivals may hurt Facebook, that’s not the real problem facing Facebook.
In most advanced countries Facebook has reached saturation point. It can’t go up because there are no more customers out there. It can go down if it fails to deliver value to existing customers.
That’s what I see happening.
I visit Facebook because it is the only place I can communicate with certain people who are important to me. They don’t do email or belong to other online communities.
Aside from reading their updates, there’s nothing of interest to me on Facebook, so I spend the least amount of time there. I never click on advertising, sponsored links or whatever, mainly because Facebook’s advertising is appalling.
The advertising isn’t just inappropriate, Facebook advertisers are the worst bottom feeders in the business. And that tells you everything about Facebook as a business – advertisers don’t value it, users don’t value it.