The company will try to win over young people again with the help of its new project – metaverse. But it still will not help grow a young audience, according to Saxo Bank experts.
Meta Corporation, led by Mark Zuckerberg, will not be able to bring back young users who prefer Facebook to freer social networks. This forecast was published on its website by the Saxo investment bank.
According to the survey, today only 27% of teenagers have a Facebook account, although in 2012 94% of teenagers had accounts. The company’s own research showed that young users spend 2-3 times more time on TikTok than on Instagram, and communicate with friends more often on Snapchat and various messengers.
According to analysts, Facebook from the center of entertainment and communication of young people has become a platform for summer “boomers” – so called people born in 1940-1960 (during the “baby boom”). Social network algorithms further spoil the impression by offering monotonous, aggressive or misinforming content.
“In many ways, Facebook is suddenly at the epicenter of a cultural war between young people under 40 and adults over 40, with young people seeing Facebook as a source of fake news and a social network for greedy corporations,” the Saxo analysts said.
Facebook used to be the only big player, but now there are many newcomers on the market that attract audiences with their functionality, improved data management techniques and protection of personal information. Some platforms do not use algorithms to display targeted advertising based on personal preferences, which also adds to their popularity.
According to bank experts, Mark Zuckerberg and his colleagues plan to attract the attention of young people by offering a new product – a virtual universe. They want to be pioneers in this field, but young people are in no hurry to register there.
“In 2022, investors will realize that Meta is rapidly losing young audiences, and hence the company’s future potential and profitability designed to monitor users even more closely than ever before,” analysts write.
Saxo Bank predicts Meta’s parent company will see a 30% drop in revenue as it fights the growth of the new technology services market. The government’s position will also be weakened by the government, which will put pressure on the sale of some services, “breaking Zuckerberg’s dreams of a monopoly.”