Facebook has had a turbulent year
Facebook (FB) arguably had its worst year since going public. Not only has it been plagued with a number of user privacy issues, but it has also seen a slowdown in revenue as well as user growth, while its margins have contracted as well. Facebook has warned investors that these trends might continue.
However, despite these issues, Facebook is still adding millions of users every quarter. The platform had 2.27 monthly active users as of September 2018. However, most of its user growth is coming from unlucrative areas. Its user base in the US has stagnated, while its user base in Europe is declining. The US and Europe are by far the most lucrative regions for Facebook. All these headwinds have caused Facebook’s stock to decline by over 30% since peaking in July this year.
Advertisers are still using Facebook for marketing
Despite all these headwinds, Facebook’s biggest strength is its size despite its reducing popularity, especially among the younger demography. Marketers can still get the kind of reach they want through Facebook.
Apparently, advertisers are not deserting the platform, according to the latest report by eMarketer. The research firm forecasts that the number of publishers in the US using the platform for marketing increased to 86.3% in 2018. eMarketer expects that number to remain stable next year.