Is Facebook a Sinking Ship?
Facebook has come under fire over the past several months after allegations that it may have misused data it collected from its users. While the company’s stock has taken a hit in the short-term, there is no reason to believe that Facebook is any danger of becoming obsolete or replaced by a similar service in the near future.
It’s Hard to Quit Facebook Completely
It is worth pointing out that experts have noted that “Facebook has more adult users than any other social network by far. 68 percent of US adults use Facebook, compared to just 28 percent for Instagram, which is the second most used social network by adults in the US. 96 percent of social marketers say the ROI for Facebook is greater than other social platforms.” This is because people use the social networking site for a variety of purposes. Parents and grandparents use it to keep tabs on their children or otherwise keep abreast of what their family members are doing, and business owners use it to promote their company or otherwise engage with their audience.
People Are Used to Giving Away Their Data
Most people understand that they are trading their data for the right to use websites free of charge. They also generally understand that selling advertising is a standard way in which free sites generate revenue and stay in operation. Therefore, individuals tend to not think of giving away their data as overly intrusive compared to being able to stay in touch with their friends and family in a convenient manner. It is also worth noting that individuals do have the right to limit who sees photos, blog posts or other information transmitted through Facebook or its app. While personal information may be shared in ways that some people don’t understand or fully appreciate, it is also easy to keep information from marketers or other third-parties. Ultimately, this will keep people coming back to use Facebook for years to come.
Facebook Will Continue to Innovate
We are still in the early days of social media. This means that both Facebook and its users are in the process of understanding the implications of putting information online for all to see. As hazards such as the spread of fake news become more readily apparent, Facebook can take steps to solve those problems. For as long as the company has been around, it has generally done a good job at listening to the needs of its users. Therefore, there is no reason to think that it can’t overcome the issues that have dogged it over the past several months.
Tech Stocks Tend To Be Popular Investments
If nothing else, Facebook will survive because technology stocks always tend to attract interest. Even after falling by 20 percent on July 26, most believe that the stock will continue to climb higher over the course of the next several months and years. This is because the company is great at generating revenue even as it matures as a company.
There Are Multiple Ways to Monetize a User Base
There are a couple of key ways in which Facebook could choose to monetize its user base if it wanted to. First, it could decide to offer a paid service in addition to the free one. Second, there are rumors that the company could partner with banks to provide financial services through the app or website. While there is no doubt that Facebook has faced some adversity this year, it is not going away anytime soon. In fact, the company has a bright future seeing as it is ingrained in our lives and has the potential to generate even more revenue in the years to come.
Overall, despite the rough waters that Facebook has thus encountered, it still is proving itself to be a huge influence and success for business marketing. So keep up your business’s Facebook presence and recruiting efforts, because they are still a huge asset.