The numbers says it all – with over 1.2 billion users, Facebook has created the phenomenon of the millennials. But will this scene last?
At the end of the first quarter, analysts have estimated Facebook’s earnings to be at $2.36 billion USD, which may seem far from the end of Facebook.
However, what is happening is that the earnings are actually slowing down, and Mark Zuckerberg himself is working on tearing down the myriad functions of the website.
People would ask why would he do so, but it seems that he saw something more than the users – Financial reports have shown that the key generator of digital advertising revenue is actually from the mobile platform and not from the desktop. And on the mobile end, things are very much different from the desktop.
Facebook has seen some restrictions unlike the desktop platforms where all can be combined. When the functions of Facebook are broken down, there are competition from apps like Instagram, Snapchat, and mobile games which are not from the big blue app.
While Zuckerberg works on the dissections to fit into the mobile platform, his henchwoman Sheryl Sandberg’s next best bet will be India in search of new active users, where the growth of the users is expected to be the highest this year. They are expecting to have about 30 million new users from India by the end of the year.
Zuckerberg has sent Sandberg to India, where she is working on monetizing the region for digital advertising, as well as investing in the country to increase the smartphone as well as computer penetration rate.
However, having a large market does not necessarily translate to easy penetration.
Things may not come to what Zuckerberg will expect, but if Sandberg is making this gamble, there is no reason why Zuckerberg wouldn’t support her.