A decline in Facebook usage might not be the doomsday scenario for the company that many are predicting
There are already indications that people are using the 2.2 billion-member social network less than they used to — and there are fears among some observers and investors that usage could continue to dwindle over the coming months.
But even if that's the case, that's not necessarily any reason to worry, according to Rob Saunderson, an analyst at MKM Partners.
In a new research note for clients on Monday, Saunderson argued that Facebook can continue to grow its revenues even if it can't convince users to spend more time on the social network, and points to television as a historical example of this.
It has a plethora of other social apps that are largely free of the reputational issues plaguing Facebook's core product.
In other words: The television industry's continued good health even after viewership started to go into reverse shows that a drop in engagement isn't necessarily the end of the world for Facebook — and the company also has a bevvy of other lucrative properties to support it. Some of these, like WhatsApp, are extremely early in their path to monetization, and are likely to see significant revenue growths for years to come.
We use cookies and analyse traffic to this site. By continuing to use this site, closing this banner, or clicking "I Agree", you agree to the use of cookies. Read our privacy poplicy for more information.