Why Facebook and Meta failed:
In the last 18 years, Facebook is going through its worst rate today. Facebook is going to fire 11,000 of its workers. Or yes, Mark Zuckerberg said that not firing 13 percent employee is one of the most difficult decisions of my life.
Because Facebook’s revenue is continuously falling, guys this is such a case study that can teach you a lot from business. Because Facebook used to be one of the top company in the world. Where Mark Zuckerberg was once the top 3 richest person in the world. Now in the coming time, he might not even be in the top 20 list.
Why Facebook and Meta failed
What is the reason behind the fall of Facebook?
So friends, the biggest start of Facebook’s fall is from 2 February 2022, when Meta had lost about $ 230 billion within a day, the reason for all this was the company’s own quarterly revenue was falling and their user base was falling continuously. Because of which many people started selling Facebook’s shares and the value of Facebook continued to fall.
If these friends try to explain to you 30 billion dollars, then they had lost more than the GDP of the whole of New Zealand, within a day, if we understand from this other example, then if we add the economy of Sri Lanka, Afghanistan, Nepal and Bhutan. So Bo is also not 230 Billion. So much Facebook lost in one day.
If we see between the year 2011 to 2022, then first the user base of Facebook increased but after the year 2020, their user base first stagnated and then there has been a gradual decrement in them.
What happened to Facebook meta:
Facebook’s parent company Meta basically owns 3 companies, WhatsApp, Facebook & Instagram and if we look at the user base of Instagram, a stagnant growth is visible even on Baha, which means that the user base has stopped or it is falling down. He is going.
What is the reason for this:
The biggest reason for this is saturation, if we have about 8 billion people in the whole world, in which there are about 2.91 billion active users, the remaining 5 billion of Facebook, out of which there are about 3 billion people who are on the Internet. People who live in countries like Nigeria, Pakistan and Bangladesh, internet facility is not good in their area.This makes it difficult for them to use Facebook.
Russia, China and Iran are the 3 countries where Facebook is banned. These countries have a lot of people, about 1.7 billion altogether. Moreover, the remaining Facebook users are mostly under 10 years old. So it means that Facebook has achieved the highest growth ever. Now it is impossible to grow more than this.
And here Mark Zuckerberg makes his first mistake, he said that we will try to increase the users of Facebook, Facebook has touched its saturation.So now encouraging the users will be the biggest mistake. This is where Facebook made its first mistake.
If we try to understand the step by step reason about the fall of Facebook, the user base here is now becoming of the older generation, when Facebook was launched in 2004, at that time they had 75 percent younger generation. The population was with them. Who used to use Facebook. But that population is a bit old now. He is in the age group of 45 and 50. But the youth of today’s present generation is no longer using Facebook, they are now moving to other platforms because they want privacy and there are many people on Facebook who are very old age.
According to a survey conducted in the USA, social media usage has decreased continuously from 79% to 69% among individuals aged 12-34. In the age group of 35-54, usage decreased from 72% to 69%. However, social media usage among individuals aged 55 and above has increased from 49% to 53%.
Before having lunch in France and Spain, they had lunched it in Canada and USA market but there also people had given a lot of negative feedback but this company did not do any work on it and they started doing it in relaunch market and They tried to started a huge hype in the market. Their target was to add about 5 lakh users on metaverse by the end of this year, which was not possible, later the company made a target of adding 2 lakh 80 thousand users, which also could not be completed. Today they have less than 2 lakh users on metaverse.Means those who are older are using Facebook more in today’s date.
See today’s youth is not on Facebook because today there is a big competition in the market, today many applications have come in the world which were big competitors of Facebook, before 10 years no one was big in front of Facebook. There was no competitor, if you see today about the most used application
No. 1- YouTube
No. 2- TikTok
No. 3 – Instagram
No 4- Snapchat and some apps
Today, most people are not using Facebook, the biggest reason behind this is that you will get to see longform content on YouTube, along with this, you will get short form content on Tiktok, you will get images and photos on Instagram and you will get on Snapchat. You will get the features of photo with messages, you will get political and social posts on Twitter, but what is the USP of Facebook here?
If you look at today’s date, Facebook is not providing any such unique thing which makes them different in the market. Why would people use Facebook for this? And that’s why they introduced Metaverse in the market. Their growth which has been slow can increase if they bring a new feature called Metverse in the market.
Mark Zuckerberg had lunched Matverse market in October 2021 for some unique ness lane in Facebook, Matverse is a virtual world where people can have parties, hangouts, meetings, and conferences, which means that you can interact with the world while sitting at your home. Can see everything. This very unique thing was tried by Mark Zuckerberg to have lunch in Metroverse.
And for this, he had lunch in two things named Horizon World and Horizon Warroom in the market. When Horizon World was launched in Spain and France in August 2022, there was negative feedback from the market, people did not like it at all, because the existing Circle platform was far ahead of its material. From the stage To date, if we have missed the Virtual Reality platform, Nicole has come a long way. People were not benefiting much from the platform that Mark Zuckerberg had built by investing $10 million and many memes were against him.
Had given very negative feedback but this company didn’t do any work on it and they started doing it in re-launch market and they tried to start a big promotion in the market. His target was to add about 5 lakh users on Metaverse by the end of this year, which was not possible, later the company set a target of adding 2 lakh 80 thousand users, which also could not be completed. Today he has less than 2 lakh users on the Metaverse.
CNBC also did a survey on Metaverse, they asked all the CSOs that what is your truth about Metaverse, then they said that this is a market strategy or it is hype and some people said that it occurs in teenage Is there a platform for this, or can it be said that this is a strategy to rebrand Facebook, which you can also easily understand, due to which Facebook is falling in today’s date.
Reason no 2
If we look at the next mistake of Facebook, then in 2004, where Facebook was doing the biggest innovation in the world, it had created a platform named Facebook which was connecting the people of the world. Well Facebook is copying other platforms in today’s date. Where we see that Tiktok is a short form video platform, which has videos of work length of more than 1 minute, which people are liking a lot today.
Tiktok’s annual growth is about 142%, while Facebook’s is only 37%. Due to which Mark Zuckerberg tried to copy these platforms and that is why Mark Zuckerberg lunched an application named Lasso in the market which was a copy of Tiktok which did not open in the market and Mark had to shut it down. .
After this, he also released Instagram which was a photo platform where people used to post photos of travel food, there was a section of stories which had a different audience, because of which he saw that a lot of audience was shifting to Tiktok. Is. So for this reason they added the features of Reels on Instagram.
In today’s date, you see on Instagram, which used to be the real value of Instagram, it has completely changed. In today’s date, you will see a dance video on Baha Pe. Which happens on Tiktok. So they completely shifted Instagram which their real users didn’t like. Sometimes many users also gave him feedback, some big celebrities also gave him feedback.
Why don’t you try to make Instagram Tiktok, because there was a real audience on Baha which liked the photos a lot. So they shifted this entire platform to short video platform.
Reason no 3
Thirdly, if we see the structure of their copy, then the features which were disappearing in WhatsApp as well as the features of status, all these were completely copied from Snapchat. Where Facebook was doing innovation in 2004, in 2020-22, Facebook was now trying to copy it completely, which did not get the result at all, which became completely negative in the market. But if we try to understand the biggest reason behind the fall of Meta and Facebook is that they do not have any revenue model for the customers.
As these platforms create an ecosystem, we try to understand YouTube, what happens in YouTube is that there is a YouTube platform in the middle, one side is a creator like us and one side companies run AD. Whatever video you watch, YouTube keeps 50 percent of the AD that comes in it and gives 50 percent income to the creators.
So here YouTube has created an ecosystem where the work of the companies running AD is also going on, the work of YouTube is also going on and the work of the creators is also going on. And seeing those ADs, the work of the customer who consumes the product is also going on. So it became a completely ecosystem.
So you will not get to see such ecosystem neither on Facebook nor on Instagram, this is the biggest reason that today creators are not using it. If Facebook also brought a similar revenue feature where creators would put videos and they would also earn a good amount.
Although Facebook has tried to invest in Cober, but the creators did not get much income from this. So that’s why in today’s date no big creator spends much of his time in Facebook. That’s why people spend most of the time on youtube Because YouTube has become the best revenue source in today’s date. And the lag of this revenue model is also a big reason for Facebook’s fall.
Reason no 4
With this comes another big reason for (Why Facebook and Meta failed)Facebook fall, which is the privacy issue, it has been claimed on Facebook that Facebook leaks people’s data, the biggest example of this is the U.S.A. Presidential election, which will be seen a lot The data of all the users was leaked and used on the election of U.S. And the next biggest reason related to this is Apple, Apple has launched a new update which is iOS 14.5, in which you can not track users directly through your Facebook. .
When tracking a user, a notification must be sent regarding the ability to track them. So OBOS is that none of the users want anyone to track them. So these features were not there in Android and if you see the highest paying customers, then only iPhone users are there.
If Facebook can’t track iPhone users, it can’t show or sell certain products to them. If we look at the complete way of running Facebook’s AD, then our data is stored among the users of Facebook and the kind of company that wants to sell the product, Facebook shows AD to those users.
For example, if I like a food related product, then this data will be stored with Facebook that if I see things related to food, then Zomato’s AD should run on me, then this is the way,
So with the new update of ios, Facebook can no longer track them completely, so their biggest drop in revenue came here, so here were some reasons, you will see that in the last 6 months, the share of meta has fallen by 50 percent. And here Mark Zuckerberg is also admitting that the company’s revenue is falling very fast due to which 11,500 employees have been laid off.