From what I read here, there are two major social networks that still stand: Linkedin and Facebook. While I terminated my Linkedin account as I see no value in whoring my detailed resume around for no apparent benefit, I see the network as solid, as most people are loathe to eradicate a supposedly useful network of valuable professional connections it took them a long time to build (I mean, one of those headhunters could out of blue offer me a tremendous opportunity, right? Wrong). Anyway.
But Facebook? If I were an investor, I would ditch the stock immediately. We’ve seen high-profile people leaving the platform in the wake of the Cambridge Analytica scandal. Highly educated, high-income people say they “don’t have time for this shit.” It’s been long overdue that advertisers recognize that most people who click on their ads (ads made visible to them based on their self-declared “interests”) have absolutely no intention to buy their products or services. These people would just click on anything that pops up.
Case in point. I once ventured into advertising on Facebook. I picked the geography, the age group, and the interests that were compatible with my business (very specific). From the “likes” and comments I got on my campaign, it did not take me long to realize the vast majority of people who actually clicked or commented were all from a very small segment of the population. I will not go into specifics, but let us say this segment is characterized by ultra-low incomes, professions that have absolutely nothing to do with their professed interests, and therefore zero likelihood they would ever pay a dime for my services.
It seems to me that Facebook is likely to experience an internal meltdown, and that eventually, most active Facebook users will be people who face financial difficulties or hardship (far from their families, e.g. migrant workers), definitely not high-rolling individuals on whom you don’t mind spending USD2.0/click.
What are your views? Are you still a FB user, or not, and why? Do you believe their business model is sustainable? Do you still believe that the return of advertising on FB is really several times that of traditional media?