Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Facebook’s Lost Users

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While Facebook’s revenue was up from Q4 last year some 47 percent, to $12.97 billion, like many other companies this earnings season it took a $2.27 billion charge due to the tax overhaul.

But more notably, Recode is reporting the company actually lost users for the first time ever in the U.S. and Canada, dropping from 185 million to 184 million in the fourth quarter from the previous one.

And as Recode points out, it’s a small drop in a market dominated by Facebook.

Facebook itself also put out a press release indicating that the company had shown fewer viral videos, which also reduced time total time spent by ~50 million hours every day.

Yeah, let that one hang out there in your head for a minute.

So what’s the good news? Facebooks Monthly Average Users reached 2.13 billion (another mind bender), up 14 percent year-over-year.

CEO Mark Zuckerberg has been out and about attempting to sooth the worries of the Street, indicating that having people spend less time on the site is actually a good thing.

As quoted in a New York Times story:

“I believe that the time spent on Facebook will be more valuable,” Mr. Zuckerberg said in a conference call with analysts. “If people interact more, it should lead to stronger community. When you care about something, you’re willing to see ads to experience it.”
– via www.nytimes.com

The Times highlights the scrutiny the company has been under since it announced in January changes to its News Feed, wanting to emphasize more “meaningful” content, including showing more posts and photos that one’s friends and families have interacted with.

Does that mean skateboarding bulldogs are about to make a comeback?!!

Turbo’s Take: This chatter all much ado about nothing. Speaking of dogs, when it comes to digital advertising worldwide, Google and Facebook are still the big ones in the room, and I don’t see that changing anytime soon. In fact, quite the opposite: By restricting publishers and organizations’ organic News Feeds, they’re going to be forced to pay to play moreso on Facebook than ever. In the meantime, we’ll see if Zuck’s new friends and family focused plan pays off, and in the process stays out of the headlights of the 2018 midterm campaign season and election.

Written by turbotodd

February 1, 2018 at 10:16 am

Posted in 2018

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