Facebook is now LOSING users and traffic

As we have predicted for the past 6 months, Facebook is in serious decline. But now, on top of concerns over private information being sold to advertisers, plus the cover-ups of complaints about pedos, it is LOSING market share among users aged 18-25 and 35-44.

The lack of enthusiasm towards Facebook from other countries – reported in yesterday’s post (see below) – is another reason growth has slowed. Research in the past has claimed Facebook can gain up to 6 or 7 million users per month. In June 2010 it gained a very small 320,000 according to market research from Insider Network.

facebook advertiser statisticsFurther problems for Facebook revolve around the games and apps – the money is not there! For example:

  • Zynga is the top app developer with about 50% market share
  • Number 2, Electric Arts, has only about 15%
  • Zynga made only $250m in 2009 (from about 250m users)

In other words, the most successful app developer for Facebook could gather only $1 (ONE DOLLAR) on average per user per year!

By any business model, that is rubbish.

The money is not there in advertising either. Facebook allegedly “served” 176 BILLION ads in the first quarter 2010 yet made less than $80 million profit in 2009. The hype about Facebook and its value is just that – hype. It will make a few million for a handfull of companies. It is NOT the future of the web and NOT the future of social media.

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