Post IPO Effect: Only 40% Facebook Users Are Logging – In Everyday [Study]

Must Read

Hands-Free Resources: How Businesses Are Using AR to Make Workplaces Safe and Productive

The role of efficiency and ease in the modern world has become forefronted when it comes to technology, particularly...

Top Countries by App Downloads Q2 2021: India Dominates With 7 Billion+ Downloads [REPORT]

As the adoption of smartphones and the Internet has increased over the last decade, so has the number of...

3 Most Common Mistakes Social Media Marketers Are Committing In 2016

In their quest for greater sales and increased ROI, the self-appointed “digital marketing guru” has lost touch with what...

The biggest social networking website off all time, Facebook’s stability is the biggest concern of the market now. There might be a possibility that it will sink to the bottom and rest in peace within this decade. Facebook IPO was in pathetic condition and gradually decreasing share price has punched a big question on Facebook’s future surviving strategies. Apparently, Facebook’s down fall has already started and analysts are concerned about the Facebook users’ engagement capabilities and their future problems.

Facebook Users Are Loosing Charm

Though Facebook is having more than 901 million users highest among all social networking websites but only 40% of its users were accessing their Facebook account regularly. According to a report by Reuters/Ipsos only two active users log-in daily out of 5 Facebook users. The survey shows that 34% Facebook users are spending only half of the time on Facebook compare to which they used to spend six months before and only 20% users have increased their pace in Facebook timeline. The reason behind such down-fall is the constant changing attitude towards Facebook; Users are feeling that the regular habit and activities over Facebook has become boring, Facebook is not productive and security of their sensitive information concerns them too. It is a matter of consideration that most Facebook users belongs from 18 to 34 aged group. 60% users of this age group update their Facebook account daily where only 29% daily users were found among the 55 year age group.

Facebook has declined to comment on the survey, but this will lead to a significant decrease in their advertisement revenue in future as well. GM motors – the third biggest revenue contributor for their Ads in US- recently withdrew their paid advertisement on Facebook just few days before IPO filing.


NASDAQ & Facebook

Bouncing back of Facebook IPO at NASDAQ:

People who invested on Facebook IPO were concerned about the revenue issues and indeed were angry. Facebook share price has fallen down by 29% from its debut price of $38 on this past Monday. The current share price is trading at nearly $27.1( till June 8 market closed) in NASDAQ . Indeed, such variation in share price is already creating a lot of stir for the Facebook CEO Mark Zukerburg. The pit fall in Facebook share price had reduced its market value from $104 billion to roughly $74 billion – a straight negative dive of $30 billion. According to a online poll, conducted by global News agency Reuters, Facebook share holders are in trouble due to the down fall in its share price in just 3 weeks since the IPO launch.

Crash of Facebook:

Nearly half of the Facebook users replied that they had spent about the same amount of time on the social network as six months ago. Keeping users coming back is crucial for all social media services, said Gartner analyst Ray Valdes.

“Facebook continuously has the challenge of Facebook fatigue, of the novelty factor wearing off, and therefore they have to introduce new kinds of interaction,” said Valdes, citing new features such as the “Timeline” interface and the planned $1 billion acquisition of mobile photo-sharing app Instagram.

46% of peoples agreed that after Facebook IPO auction they had demoralized themselves to invest further in general stock markets. Facebook had generated $ 3.7 billion revenue last year, mostly from the ads on its website – comparing with Google Inc $38 billion revenue through Search Ads, which is being considered among the most effective means of online marketing. There are more than 83 million users who are accessing Facebook through their mobile devices. It is a matter of consideration that such a significant percentage of users are using Social networking on mobile. Till now, Facebook has failed to set any revenue model to monetize its mobile traffic. There is no other way, besides desktop users, for Facebook to generate such a large amount of revenue.

Facebook is still perfecting the effectiveness of its ads, said Gartner’s Valdes. But comments posted on the website from Facebook user’s friends were responsible for only 20 percent  actually making a purchase. “Comments and recommendations from friends on Facebook do carry a lot of weight, so I’m surprised by the number,” Valdes added.

The other social media websites are also eyeing on pit falls of the social networking giant in various aspects. Pinterest- another rapidly growing social networking site- is creating appreciable traction among business orientated users. 61% American women share their loneliness with Pinterest for shopping, sharing their photos and pining anonymously. While 38% are  shopping online, investigating about products and use other social network (including Facebook) for Chatting and Sharing. 27% of women are showing their intellectualism by going through blogs and news and the counting is still increasing. Soon, there might be a news come that Pinterest leaf frog Facebook in generating more ad revenues.


Though the social networking giant still have the grip on their users, but in the field of online advertisement it is still lagging behind and maintaining loose command. It will be great to monitor the wining trade of Facebook despite of all such odds and evens. Hopefully, the great silence from Facebook’s mobile arm will come to and end soon.



Please enter your comment!
Please enter your name here

Latest News

Zomato To Give Booster Shot To Grofers Now: Eyes On A Big Chunk Of Grocery Delivery Market

After the historic performance with IPO, Zomato is now gearing up for another milestone - to grab a sizeable...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This