Parent company Meta has announced its second quarter (Q2) 2022 results. However, things don’t go exactly as planned. There are many reasons why Facebook, which has been in great competition with TikTok recently, experienced a decrease in its wealth in the second quarter of 2022.
TikTok seen as biggest reason for Facebook downfall
Social network revenues have fallen since 2021, according to a press release from Meta. Allegedly, Mark Zuckerberg stated that economic conditions are worse than they were in the second quarter of 2021.
At the same time, the chart in DataReportal reveals that there has not been much change in the number of active users in the last few quarters before 2022. On the contrary, there has been a decrease in the number of new users. It seems that Apple’s privacy changes have negatively impacted Facebook’s advertising business. However, it is not possible to say this as the primary reason for the great decline.
According to Bloomberg, TikTok’s annual revenue in 2021 was $4.6 billion. By the end of 2022, this revenue is expected to reach 12 billion dollars. At the same time, this platform has a rapidly increasing number of users. Looking at these statistics, many cited TikTok as the main reason for Facebook’s decline in both revenue and user growth. In addition, the statistics caused a great deal of speculation.
The most important reason why TikTok is successful is its recommendation algorithm. In this way, it recommends content according to the interests of users and keeps them constantly engaged on the platform. It also provides access to more content in a short time with shorter videos.
Another advantage that TikTok has is that people with many followers use the platform to communicate with their followers. This caused users to prefer TikTok instead of Facebook. Additionally, many brands and businesses prefer to use TikTok for advertising purposes.
Many still consider Facebook to be one of the best social media platforms. It is believed that the decline will improve thanks to new services such as Reels. The winners from the increase in the competition between Facebook and TikTok are the users. In this way, users receive new and improved services.
So, what do you think about this subject? What do you think is the most important reason for Facebook’s decline? Don’t forget to share your views with us in the comments section!
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