Sci-tech

Facebook earnings report shows slow user growth in 4Q 2017

Facebook earnings report shows slow user growth in 4Q 2017

More troubling still for Facebook, not all of those young users are migrating to Instagram, according to eMarketer principal analyst Debra Aho Williamson.

This year, in fact, less than half of US internet consumers ages 12-to-17 will use Facebook, the research foresees. According to the report, Snapchat edged out Instagram in both monthly usage and as the favourite social platform among teens in the US, Snapchat actually saw both numbers rise, even as Instagram held steady with usage and fell as a favourite. Of the 2 million US users under 25 that eMarketer estimates Facebook will drop this year, it sees Instagram catching only 1.6 million, while Snapchat is likely to scoop up 1.9 million. Around 5.8% of those in the 18-24 age bracket will leave the platform.

The report will make uneasy reading for Facebook, coming as it tries to address concerns it was manipulated by Russian Federation in the run-up to the 2016 United States elections and looks to improve the experience of spending time on the platform following a change to its news feed. For 2018, eMarketer predicts the number of total Facebook users in the USA will reach 169.5 million, up nearly one per cent from 2017. Facebook is appealing less to younger generations and Instagram is not picking up the slack as it previously did. Snapchat is a more likely destination. The research firm, which bases its analysis on survey and traffic data from research firms and regulatory agencies, Facebook press releases, historical trends, Internet and mobile trends and other factors, says Snapchat will continue to have more users ages 12 to 24 than Instagram. Users have been spending considerably less time on the platform, according to the most recent company earnings report, but profits still soared.

Snapchat will rack up 86.5 million users, this year - an increase of 9.3% compared to 2017. In fact, the over-55 set are expected to add 400,000 new users to Facebook's social platform passenger list, bringing the total number to an estimated 6.3 million.

A 5.6 percent decline in users between 12 and 17 years old.

More news: Trump administration proposing to replace food stamps with food boxes

A report by eMarketer said Snapchat is drawing youths away from Facebook at a quicker clip than Facebook-owned Instagram.

The kids may think Facebook is lame, but it's doubtful that it's going anywhere.

Facebook seems to have lost its charm of being the old-school favourite in social media hub. Children under ten are already on social media.

In fact, Snapchat could even see increased interest from older groups now. Meanwhile, Facebook is failing to add new things to draw young people in.