Facebook is still one of the largest social networks in the world today. However, it seems that the platform’s position has somewhat declined over the past several years due to the rise of many other competitors. According to the latest BuzzFeed report, more and more users spend less time, even abandoning Facebook for many different reasons.
Felicia DellaFortuna, CEO of BuzzFeed said: “Now this quarter, we continue to see users spending less and less time on Facebook.”. Earlier, a report by Meta, the parent company of Facebook, also showed that its daily active users had decreased slightly, to 1.93 billion people. This is also the first quarter Facebook has faced this situation.
More specifically, there are about 500,000 users who have decided to spend less time, or give up Facebook altogether. Some experts say that the social networking platform has grown to the point of product saturation globally, with the number of users reaching a peak and not being able to grow any more.
On the other hand, in recent years, Facebook, the core application of Meta, has been under tremendous pressure against many other competitors. In which, the most prominent is probably TikTok, a platform specializing in short videos with many powerful editing tools, which is growing at a dizzying speed. That’s why Facebook had to add a similar feature called Reels to catch up with the competition and pull users towards it.
During a meeting with investors at the end of February, Mark Zuckerberg, the “father” of Facebook and director of Meta, said: “Users have a lot of choices in how to spend their time, and apps like TikTok are thriving. That’s why investing in Reels is so important in the long run“.
“Due to the competition, the shift to short video content formats, and the fact that we are focusing on younger audiences and more optimizing overall engagement, Facebook will certainly continue to face challenges. with a lot of pressure in attracting and impressing users in the near future“.
Surprisingly, BuzzFeed, which is commerce-focused with the majority of its content viewing from Facebook, hasn’t suffered too much from the problem. Felicia expects that trend to continue into the future: “We leverage every platform to expand our commerce business, and will “encroach” on faster-growing platforms. This will help us reduce our reliance on any one particular platform over the next few years“.
More specifically, BuzzFeed’s 2021 revenue is $398 million, up 24% from 2020. Recently, the company also announced new plans to “accelerate profits,” which include including staff reductions. BuzzFeed shares also rose 2% in morning trading on March 23.
According to CNBC
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