Facebook is one of the chatty god’s of social media. There are billions of users and almost that many advertisers. Instead of keeping customers happy, Facebook is trying to keep advertisers happy. And that strategy is beginning to deteriorate. Princeton researchers think Facebook will come to a fast end just like an infectious disease. In fact, Princeton is studying disease models to understand the mass appeal and then a quick flight out of Facebook and other social media sites. According to teenagers, Facebook lost its cool more than five years ago, and that’s usually an ominous sign.
A recent article posted by businessinsider.com may be a sign that coolness is leaving Facebook. Facebook’s main revenue source is drying up, according to that article. And that news is hitting Wall Street like a cold water shower. The company’s second quarter earnings are not going to make stockholders happy. But Facebook has an enormous bag of techno tricks. One of them is turning video and Instagram ads into their new cash cows. The company, eMarketer thinks the Instagram app will generate more than $3.9 billion in ad revenue in 2017. Snapchat will only generate more than $700 million.
Since Facebook shares are up 40 percent this year, the company must generate more revenue to show they are not losing their cool with Millennials, and the baby boomers who try to connect with people in the past. So, CEO Mark Zuckerberg has monetizing on his brain. Facebook will collect for exclusive videos and shows. If there is a way to pull in advertising money, Zuckerberg and company will find it.
Since Millennials are the chosen ones on Facebook, the odds that the company is going to stop growing is a real possibility. But Facebook does have the attention of users in emerging markets like Brazil, and Argentina, so the company will focus on those markets for additional growth, according to financial analysts.
Zuckerberg’s Facebook platform is one of the technological advancements that is changing the world, according to social media researchers. The company is still making a lot of money so the forecast of its demise is a little premature, according to Wall Street investors. Ideas like Facebook do spread like an infectious disease, and they all have an expiration date. But Facebook is big enough to survive and make money even if the cool factor turns uncool for awhile.