Facebook hit 2 billion users quickly somewhat, but may be facing hard times gaining new users easily. Facebook’s growth has been on the steady rise with its strength remaining its ubiquity.
Currently, Facebook is being accessed by about two-thirds of the part of the world with internet availability, perhaps its days of steady and quick growth is coming to an end.
The decline will not happen suddenly
Facebook’s four billion user target may be possible if about 1.5 billion persons who don’t access Facebook even with their available Internet access become active of Facebook. However, the issue lies in the fact that majority of these people stay in China, where it’s impossible to access Facebook. Consequently, Facebook may have to compromise some of its policies if these set of individuals have to access Facebook. When this is achieved, Facebook stands the chance of making more money by advertising.
It may not be effortless as it seems. Following an analysis of Facebook’s revenue in the recent quarter per user geography, Europe, Asia, and North America stood out as the primary source of income for Facebook. And it’s not hard to see why; these geographical areas have more internet-connected people who have access to Facebook. According to a report, Americans spend about 5 hours on their mobile daily, and they are the target audience of businesses that advertise.
Likewise, North American Facebook user can comfortably spend a reasonable amount on consumer goods unlike the counterpart in a developing area.
Creating access and paving ways
The future set of Facebook users may not be very lucrative and will cause Facebook to spend more in reaching such group. It’s clear that Facebook will soon get to the limit of individuals with internet access, little wonder efforts are being put in place to ensure it keeps spreading. Paying telecoms to extend Facebook to undeveloped areas, subsidizing WiFi usage in India, and strengthening internet access in Sub-Saharan Africa are relentless efforts by Facebook to extend its services.
Apparently, these are costing more, making Facebook’s expenditure to rise from $1.83 billion about two years ago to $4.5 billion in 2016.
Facebook may have no option than to acquire more users itself by building the infrastructure. Suffice it to be that Facebook’s future will probably involve more expenses to gain more users that will yield more profit.