Published: Sat, February 03, 2018
Tech | By Constance Martin

Facebook Usage Down By 50 Million Hours Daily In the US

Facebook Usage Down By 50 Million Hours Daily In the US

In mid-December, researchers from Facebook acknowledged that too much time spent passively scrolling in the News Feed can be detrimental, and 11 days into 2018, Facebook announced the first round of News Feed changes - and then closed January with a renewed focus on local news.

While it is hard to pin down exactly what led to the lower engagement numbers, they may be due to the company's shift away from news and general saturation in the social media marketplace, said Kevin Krewell, principal analyst at Tirias Research.

"The most important driver of our business has never been time spent by itself", he continued.

Shares of the company were down 3 per cent at $181.26 after the bell on Wednesday. But Facebook's chief operating officer argued that having users engage more with friends' posts could lead to further financial opportunities for the company. But, if Facebook does its job well, the changes "should increase the number of meaningful interactions people will have", Zuckerberg said.

Instead of playing defense, Facebook chose to disrupt itself to the point where the company owns 49 percent of the global market share of that space, and 77 percent of Facebook's total audience now uses at least one global messaging app. "It's full screen, it's authentic, it's very engaging". "The street probably likes that", he said.

"We made changes that reduced time spent on Facebook by roughly 50 million hours every day".

Meaningful social interactions are the new buzzwords for Facebook executives.

Reviewing the Insider Trends for The Coca-Cola Company (KO)

Facebook said about 1.40 billion people were using its service daily as of December 31, up 14 per cent from a year earlier, compared with analysts' estimate of 1.41 billion, according to financial data and analytics firm FactSet. In the third quarter, the growth in daily users was the slowest ever.

"We don't see this is an ongoing trend, but we do anticipate that DAU in this region may fluctuate given the relatively high penetration level", Wehmer said during the call.

Facebook CEO Mark Zuckerberg said recently that one of the updates to the site is about "making sure the information you see on Facebook comes from broadly trusted and high-quality sources, in order to counter misinformation and polarization". "Remember, they are optimizing at the end of the day for business results for a given dollar spent, not the impression price that we're kind of nominally reporting here".

More worrying, in Facebook's most lucrative market, the U.S. and Canada, the number of people who log on to Facebook every day fell for the first time ever, dropping by 700, 000 to about 184 million.

"In other words, better quality engagement and better ability to target ads".

It's no surprise if people are beginning to turn away from the networking site though.

Like this: