Is Facebook Inc. (NASDAQ:FB)’S Dominance Under Threat?

Posted by Ryan Mandell November 13, 2013 0 Comment 2291 views


Recently GlobalWebIndex confirmed the decline in Facebook Inc. (NASDAQ:FB)’s teen users revealed by a study on digital consumers in 32 markets. The study suggested 20% drop in number of active teenagers on Facebook from 76% in 1Q13 to 56% in 3Q13. The term active teenagers mean people who do more than ‘liking’ a page on web. The biggest (over 50%) decline in active usage was reported in Netherlands and about 16% for American teens.

The CFO Concern

The Chief Financial Officer of Facebook Inc. (NASDAQ:FB), David Ebersman also recently confirmed a worrying trend about teenagers decline on world’s biggest social networking portal and added, “Our best analysis of youth engagement in the U.S. reveals that usage of Facebook among U.S. teens overall was stable. However, we did see a decrease in daily users specifically among younger teens.”

Where the Teens are Getting Diverted?

With increase in mobile transition more teens are getting used to Facebook Inc. (NASDAQ:FB)’s Mobile App, Facebook Messenger which witnessed around 89% increase in more active usage between 1Q13 and 3Q13. During the same period teenage active users fell by approximately 17% on Facebook. But even with strong double digit increase in usage, Facebook Messenger isn’t leading the chart.

The chart buster is a popular mobile chat service, WeChat that witnessed four digit increases of 1021% in its teenage active usage. This Chinese messaging platform seen the most rapid growth in active users aged 16 to 19. The real growth for the service comes from its country of origin, China as well as parts of South East Asia.

The other to topple the list include, Twitter Inc. (NYSE:TWTR)’s owned video sharing app, Vine for which teenage active users grew by 639%; the photo sharing app, Flicker for which the active usage grew by 254%; and Microsoft Corporation (NASDAQ:MSFT) owned messaging app, Skype that demonstrated 105% growth.

 How safe are Rivals?

Arc social networking rivals of Facebook Inc. (NASDAQ:FB), Twitter Inc. (NYSE:TWTR) seems better insulated owing to its role in accessing real-time news, following celebrities and interacting with TV. The other rival Google Inc. (NASDAQ:GOOG)’s Google + platform also seems safer given to its association with broader networks and content.



About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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