Facebook earns a tonne of its revenue from advertisers. But with teenage users reportedly leaving the platform, this could be about to change.
Background: Facebook is the massive social media platform founded by Mark Zuckerberg (aka Robot Zuck). And in its third-quarter earning report, there were some pretty concerning signs.
What happened: The report revealed monthly active users rose just 6%. This is veeery low for Facebook. Its revenue also climbed by a weaker-than-expected 35% due to Apple's new privacy rules.
What else: Recent leaks from within Facebook show that it has been losing its under-30s user-base. And, even Instagram's growth among younger users has reportedly hit its peak. Sound the alarm.
💡Facebook is the master of turning a whole other app into a feature within its own app.
💡They do this because popular features often attract more eyeballs. And advertisers flock to the platforms where there are the most eyeballs. But internal Facebook documents show teenage users of the app are projected to dip a further 45% over the next two years, thanks to new apps like TikTok.
💡If Facebook loses its young audience, advertisers will have no choice but to seek other platforms for their ad campaigns.
Sign up for Flux and join 100,000 members of the Flux family
