The message is simple: The prospect of this giant of social network is grim because it is becoming less popular amongst the youngsters. Since many parents are joining Facebook, with an aim to get in touch with the “private” side of their children and possibly to link up with old friends of their own, the younger generation have a feeling of being spied. They would merely keep an idle identify in the Republic of Zuckerberg, but to connect with their friends via other networks – Twitters, Whatsapp, and so forth.
On a first glance, the argument sounds entirely logical. And it fits well with what I could observe. Nonetheless, I’m not convinced that Facebook is losing its business.
Why? Because the income of Zuckerberg’s country does not (directly) depend on the number of its citizen, but, rather, on advertisement – the number and unit price of which are related to how good the country in promoting the sales, and, therefore, indirectly related to the purchasing power of its citizens. It goes without saying that the parents and middle age people are more well-to-do than their children.
For that reason, I believe running a social network is rather similar to many other kinds of business: being trendy is good, but making money is quite a different matter.
No comments:
Post a Comment