Facebook continues to lose money due to user failure

Kathmandu. Now Facebook is facing a very dire situation. Various statistics have shown that the value of Facebook has decreased by 62 percent in the last 10 months. This means that more than half of the total value of the company has been lost.

The wealth of the company’s founder and chief executive officer (CEO) Mark Zuckerberg is also decreasing day by day. Zuckerberg, who once ranked third with a net worth of $134.5 billion, is now ranked 24th with a total of $48.3 billion. This means that Zuckerberg has lost 49 billion dollars in the last 10 months, which is one and a half times more than the gross domestic product of Nepal.

Although Facebook has come into the limelight by bringing new policies or new features in various programs, it has been facing a very difficult situation internally for the past few years. There are three main reasons behind this situation of Facebook.This is happening after Mark Zuckerberg changed the name of his main company from Facebook Inc. However, this is more than just a coincidence. Facebook is facing losses due to various reasons other than changing its company name.

Zuckerberg himself had said that the company would lose money for the five years that Meta was in operation. However, he expected the growth of the company to slow down, but in a different way or for different reasons, the company is going down.Now let’s discuss three special reasons. The reason behind this situation of Facebook is Tiktok, Apple and lack of users.

Lack of users
However, it may seem that there is a lack of users. If we calculate this way, the population of the world is about 8 billion (7 billion 97 million). It has 2.91 billion Facebook users. If you reduce 2.91 billion to 8 billion, it becomes 5 billion more.China, Russia and Iran also have a total population of 1.7 billion. These three countries have completely banned Facebook. After deducting 1.6 billion from this, about 3.3 billion people were left, of which 3 billion people are in such a situation that they do not have any access to the Internet.

For example, citizens of some developing countries have not received any kind of internet service. Now there is 300 million left. If we calculate from this, there are 15 percent of such population, whose age is less than 10 years and more than 90 years.This means that people in this age group rarely use Facebook. Similarly, the number of people who do not boycott Facebook is also high. Taking all these categories into account, Facebook is running out of new users. Since it does not get new customers, Facebook is working with the old customers.

Facebook released its data on February 3, 2022. Where it can be seen that the income of Facebook has decreased. Similarly, from the said data, it was concluded that the total number of users has also decreased. This caused a big shock to the investors of Facebook, which unexpectedly started to decline in Facebook shares.On the same day, the value of Facebook was reduced by 2 trillion 30 billion dollars. Now, on October 20, 2022, the value of Facebook is limited to 3 trillion 58 billion. Similarly, another reason for the decline in Facebook users is death. 1% of all Facebook users have died.

Who should delete the account of the deceased user, which account is still inactive. Similarly, an average of 8,000 Facebook users are dying daily due to various reasons. Due to this, Facebook users are decreasing. It doesn’t matter to Facebook if Facebook users decrease like this. The difference is that the current young generation is moving away from Facebook.

In a 2014 survey of American teenagers, it was found that about 71 percent use Facebook. Now in 2022, only 32 percent use Facebook. This means that the young generation is moving away from Facebook.The younger generation on Facebook is gradually decreasing, while the number of elderly users is increasing. You may have noticed at home that now old people are becoming active on Facebook. Many elderly people spend their days in this way as they get to spend time and gossip with their old friends.

Young people are getting attracted to new technology or media while the old generation people are starting to assimilate Facebook. That’s why some have named it ‘social network of vacationers’.

Tiktok
Facebook was very popular in the early days of its establishment. As many people are new to this medium and with the advent of the Internet, the number of users has increased rapidly. Similarly, no matter how many competitors came to Facebook at that time, Facebook continued to follow them all. Facebook competitors are everywhere now.

When Facebook was launched in the early days, people used it for their various purposes. In a more general sense, Facebook was used by people as an all-in-one. People used Facebook to upload photos, videos, chat with their friends, etc.When other platforms started coming, then the growth of Facebook started to slow down. If the user needs to watch a long video or let’s say a movie, then YouTube is there. Similarly, people have made Tiktok their choice to watch short videos. People started using Instagram if they had to post photos or show the places they visited.

Similarly, people started using Snapchat to have fun by sending photos. Various messaging apps have also come for chatting.A special platform is available for every feature. All these features were previously being used by Facebook. Just as Facebook provided medium level features covering everything, other platforms started providing special features in a special way.

Users started choosing specific platforms for specific features. After that, the popularity of Facebook began to decline. The young generation wants to experience new things. That is why the young generation was looking for a new platform as an alternative to Facebook.
When the young man started to leave his platform, the question arose as to why he left. To solve this, Facebook brought a feature that allows you to put a short video (reel) like Tik Tok. Now the users who are used to Tiktok do not want to come to the reel of Facebook.

Similarly, some users of Instagram are also angry when trying to bring this feature to Instagram. Today’s users spend maximum time on Tiktok. Similarly, the total users of Tiktok spend 197.8 million hours daily, while Instagram users spend 17.6 million hours daily watching videos, which is 10 times less than Tiktok.While trying to attract users on Insta and Facebook, Facebook is being tagged as a copycat, due to which the number of users that should be increased is decreasing day by day.

Apple
Get off Facebook
Another major reason is Apple. Facebook earns from advertising. For example, we need something. If we search for that thing anywhere, after some time an advertisement for that item will appear in our Facebook feed.You may think that how Facebook knows what we are looking for. All the data we have is with Facebook. Facebook has access to photos in the gallery, phone numbers in contacts. Or let’s say we have given Facebook access to all these things.

Using this data, Facebook earns through advertising. Now let’s talk about Apple. Apple said – if Facebook has to take the data of its users, then permission should be taken. As Facebook tracks the data of Android users, it cannot track the data of Apple device users.
Before tracking data, Facebook must ask permission from the user. Now most Apple users are aware of their data and personal details. They certainly do not give permission to track data.

After the iOS 14.5 update, Facebook will need permission to track iPhone users’ data. Mostly iPhone users spend more. Due to not being able to send them suitable ads, the number of people who want to advertise through Facebook is decreasing, due to which Facebook’s advertising policy is failing.This is one of the reasons why Facebook lost 10 billion dollars this year. It is also increasing day by day.

Facebook is going down because of these three reasons. Those who say that Mark Zuckerberg is a few steps ahead. People with this sentiment expect Mark Zuckerberg’s Metaverse concept to be successful.At the initial stage, Metaverse’s virtual reality has also failed to garner good appreciation. Zuckerberg is known as an innovator, so he is expected to take Facebook forward in the future and bring the company back to its former glory.