Neilsen/Netrankings has released some figures which show a monthly decline in Facebook users for the first time since its launch, before it has even managed to fully leverage its traffic volumes into advertising sales. Its unique audience dropped 5% from December to January prompting many people predicting the demise and claiming Facebook is a fad which will go away as quickly as it arrived. Have people really already become Facebored? Or is it simply inevitable that sooner or later there would be a dip in audience as the users who created an account “just to see what all the fuss is about” disappear back to their own world grumbling that it was a load of rubbish anyway?
Mark Ritson, in his article for Marketing, blames the decline on Facebook’s open door policy. Since September 2006 Facebook has allowed anybody with a valid email address access to their network which was previously exclusive to US students (and before that just Harvard students). This is where the influx began and over the last 18 months its user base has just grown and grown, until now! Ritson uses the analogy of being in a hyper trendy bar with his friend, surrounded by beautiful people, drinking beautiful cocktails, listening to great music, before realising the only thing which spoilt the bar, was them! Two middle aged blokes with expanding waistlines stood out like a sore thumb and somehow made the place less cool. By opening its doors to anybody in the world, he argues, Facebook has made itself less cool and exclusive, and the seriously cool people, aren’t going to want to be sent a friend request from their mum or an old school teacher! They want to hang out in a cool environment which similarly cool people, doing cool things and just generally being cool.
So has Facebook’s open door policy caused this dip and is it to be the demise of the worlds largest social networking site? I don’t know, but I can say that my usage habits have changed slightly since I added my mum and dad as friends! I am now a lot more careful about what I post and where I post it, although that doesn’t really change the experience too much. Personally I would blame the 5% drop on the part time users departing, there had to be a dip at some point and I’m sure that’s how the guys at Facebook will see it.
What it does say to me is that Facebook need to get their act in gear and make this thing profitable, they have an advertising model in place now should start to reap the rewards but it is still not the finished article. I feel for them in that they are trying to be innovative and make their ads as unintrusive a possible and this is difficult to do but they must find a way. They have already been chastised for their beacon system and they probably cant afford another mistake like that. I just hope for their sake, that they don’t rue missing out on a slice of their $15 Billion valuation which could start to decline a lot faster than their user base if next months figures aren’t more positive.
