Question: is Facebook in decline?
Lately, there’s been a lot of conversation about the rise of TikTok as a social platform. Yes, it has seen some incredible growth over the recent years, and some are wondering whether this will have a negative impact on Facebook and Instagram.
As with all things, we like to start with the data. We have been digging-in and listening to a range of views on this topic. Here’s our summary and perspectives:
Let’s start with the data.
We know that TikTok had 1.2 billion monthly Daily Active Users in Q4 2021 and is expected to reach 1.8 billion by the end of 2022. In comparison, Facebook now has around 1.929 billion Daily Active Users. We also know that Facebook did report a loss of users in its 2021 Q4 report, somewhere between 500,000 and one million users over a year, depending on the source of news. While that loss might sound like a lot, one million would be a huge figure. But for a platform with 1.93 billion users, a 0.05% decline is just a drop in the ocean.
Let’s talk about platform usage.
We know that social media users are spending far more time across multiple platforms. The latest wave of research shows that on average around the world the typical social media user, uses 7.5 platforms every month (Source: We Are Social, Digital 2022 Statshot, July 2022).
Even though we are seeing significant growth in other platforms like TikTok, interestingly we’re not necessarily seeing decline in the usage of other platforms.
WHAT ABOUT THE MILLENNIALS?
We know people love to talk about the Millennials. Yes, TikTok is very popular with this demographic, however, we also know that 84% of Millennials are on Facebook, which in fact makes them the largest represented audience!
App development
Another aspect to this conversation is how well Meta is developing Facebook and Instagram to keep up with the changing times. Instagram Reels is of course the response to TikTok, and this is where Facebook really wants businesses to put their focus and efforts. Content is now more snackable than ever, and video dominates. More recently, we have seen Facebook pushing Reels aggressively in the Newsfeed, showing how the company is trying to capture the short video market.
And, it seems this strategy is working. On a Twitter post Mark Zuckerberg shared: “Reels is already our fastest growing content format by far, and today we're making it available to everyone on Facebook globally. We want Reels to be the best place for creators to connect with their community and make a living, so we're launching new monetization tools too. More details in the comments.
Is Facebook’s End Near?
We’re putting our money on the big guy! A negligibly-small drop in the number of daily users doesn’t mean that Facebook will be going anywhere anytime soon. Likely, Facebook will be looking closely at the reason for the loss in users. Combined with pressure from authorities, the public, and competitors, Facebook might actually reconsider the policies that have brought it under scrutiny and contributed to the drop in users. Which we would whole heartedly support!
Don’t panic!
It can be tempting to make knee jerk reactions and think that diverting strategies to other platforms like TikTok is the way to go. Surely that’s just moving with the times? However, the overwhelming advice from the best thinkers in the industry is to pause and look at the overall picture:
What does the data say?
What communities do we currently engage with on socials?
Why do I want to use these platforms going forward?
Who do I want to engage with?
Should we extend our portfolio?
If you would like some help investigating these questions, we’re here to help! Drop us an enquiry and let’s start a conversation about where you are at, and what you’re wanting to achieve through a social-first strategy.