The immensely popular social network, Facebook is under pressures from a number of dimensions these days. After the initial public offering, the company faced criticism and lawsuits and the CEOwas sued for the alleged insider trading. The stock price for Facebook shares dropped after the IPO and now a survey result shows that the popularity of the network is decreasing as people have started to get bored of the site and are not using it as frequently as they did earlier.
The polls conducted by Reuters and the research team at Ipsos conclude that almost 34 percent of the Facebook users have reduced their visits at the social network and say that they are getting bored of the site and the new features being introduced to retain the users like the Timeline. So the strategy is not working for the existing users.
There is a lot of advertising on the online portal but the surveys reveal that the users are not attracted to the offers at their Facebook page and therefore the rate of buying products there is extremely low. So the advertising efforts by the companies on Facebook are actually useless as their target is not achieved. They are putting in money to gain the attention of millions of Facebook users but it is getting wasted as the response is very low.
People have started to complain about the privacy issues in the network and feel that the site is no more that appealing as it was in the beginning. They are not interested in the minute details of their friends’ daily routine anymore and feel uneasy because of the unwanted updates.
The company has a challenge to fight in order to keep the business going and make it profitable in the long run. The investors are worried about the falling share prices and questioning the management about their future strategies to handle this situation. It has become a tough test for the Facebook team that has been getting a positive response since they started but after the IPO the scenario has totally changed in just a few weeks.
The users of the social network are mostly young adults who find the applications an interesting way to stay connected with their social circle. Sharing photos and videos and then commenting on them is a good pastime for them but now they have started to feel it monotonous. If they continue to feel bored, other social networks might get more attention and they might gain popularity as people want change.