Arthur J. Villasanta – Fourth Estate Contributor
Menlo Park, CA, United States (4E) – In Its present format, Facebook’s money-making News Feed won’t thrive against growing competition from more popular video-sharing sites such as Snapchat and Twitter, admitted Facebook CEO Mark Zuckerberg.
That’s why Facebook has to tweak News Feed and embrace new money makers – Private Chat and Stories. In Zuckerberg’s arithmetic, Facebook private chat will see people send 100 billion messages per day on Facebook’s family of apps. On the other hand, Zuck claims Stories will see people share 1 billion of these slideshows per day.
To get to these lofty goals, however, will mean a lot of changes will have to take place. For one, facebook will have to realign its business towards Private Chat and Stories. But while tweaks might make these features more video friendly, there’s no guarantee they’ll bring in the big bucks.
Monetization will be a big problem and it’s at the core of Facebook’s roller coaster ride in the stock market. Faebook’s year-over-year revenue growth has plummeted from 59% in Q3 2016 to 49% in 2017 and to the current 33%.
Zuckerberg admits Facebook as it stands toda is hitting saturation in developed markets. It plans to add more users in the Asia-Pacific and Rest of World but more people doesn’t mean more money. Facebook admits its revenues from non-U.S. regions are 10X less than what users in North America generates.
Zuckerberg seems undeterred, however, and said “We’re leading in most countries. Our biggest competitor by far is iMessage.”
He is buoyed that people share more photos, videos and links on WhatsApp and Messenger than they do on social networks. He believes the strength of these two Facebook units makes Facebook’s position strong vis-a-vis Apple and its iMessage.
Facebook is more aggressively monetizing Messenger through inbox ads. It’s now selling enterprise tools to brands on both Facebook and WhatsApp that let them pay to ping users.
Zuckerberg says Facebook Stories is doing even better. Over 1 billion people use its Stories features across Facebook, Messenger, Instagram and WhatsApp each day, compared to 186 million daily users on Snapchat as a whole.
Stories are where the majority of Facebook sharing growth is happening, and Facebook Stories are gaining momentum after a slow and buggy start.
Video and photo sharing site Instagram is now the most used social media platform among American teens, displacing Snapchat – but by a razor thin margin.
A subsidiary of Facebook, Instagram took this distinction based on Piper Jaffray’s 36th semi-annual “Taking Stock With Teens” survey. This report reveals that 85% of participants used Instagram at least once a month compared to 84% for Snapchat.
The survey also showed that 47% used Twitter and only 36% of teens used Facebook every month. Year-o-year data revealed a different picture. It shows that 80% of respondents used Snapchat; 79% preferred Instagram; 56% used Twitter and 52% used Facebook.
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