The past two years have not been good for Facebook. After taking a series of blows in the media centering mainly on privacy concerns (Cambridge Analytica), security problems and the propagation of fake news, Facebook has some challenges to overcome.
Despite these situations – some of which might have completely flat-lined any other company – Facebook remains by far the go-to platform for social networking. For example, in the UK, online interactions on the Facebook mobile app fell 38% in the 2018-2019 financial year, and in the US, Facebook has seen a dramatic decline in monthly page visits, dropping to 4.7 billion from 8.5 billion over the course of two years.
Still at the top spot
While the headlines look ominous – and it is certainly not a positive situation for the company – Facebook remains resilient. They have lost some market share and online activity has fallen, but there is no doubt about it, Facebook remains by far in the top spot among social media users. In fact, despite the headlines and reports, even in North America (its hardest-hit market), Facebook’s active user base grew by 1% in North America, and 12% in Asia-Pacific, with a global average growth of 8%. 52% of social media users listed Facebook as their number one platform (down from 65% in 2015), but the next-highest ranking platform was Snapchat, at 16% (CNET).
Facebook has seen some tough times, but they are not in retreat. User habits are changing, and the population as a whole is becoming increasingly cynical about what they see and read online. In fact, that is a good thing. Our collective naivety over online information is waning. Consumers are slowly becoming smarter about filtering out information they see online, and becoming more critical of information and stories which somehow fail to pass the logic test or otherwise ring some kind of dissonance with their gut feel.
What this means for businesses
Businesses which carry out their marketing campaigns in an honest and ethical manner can only stand to benefit in the long run. This also means that businesses which invest in relationships with their customers up front by adding value and building trust can move ahead in the growth charts. Advertisers must still develop copy which stands out from the rest, they must still connect with their audience, and they must still promote their products and services with aggressive offers. All of these activities are and will continue to be fundamental to a good advertising campaign. The good news is that with growing cynicism among the online population as a whole, those businesses which gain the trust of their customers stand to gain their loyalty over the long run.
The same holds true for Facebook. Although our trust has been shaken, Facebook has seen in no uncertain terms that violating this public trust – despite the potential of short-term revenue gain – is very bad for business and long run sustainability. Facebook may never bounce back to its market share of five years ago, but it remains the leader of the pack, by a long shot.
For businesses, there is no particular loyalty to Facebook or any social media platform. As Facebook market share drops and others rise, the online marketing decisions will be more complex, and will include further deliberation as to which platform is best for a business, and where their customers are most likely to be found. Platforms will also compete with each other over advertising rates and their ability to help you effectively reach your target audience and potential customers. This competition is good, and social media as an industry will emerge stronger.
Stronger in the end
Similar to the human experience, few of us run faster in our 40s than we did in our 20s. Facebook has probably passed its prime in terms of market share (not overall membership), and its health has deteriorated lately. But like people, a cold or a flue now and then keeps our immune systems active and helps us to better fight of illness in the future.
We hope the same will be true with Facebook.