Facebook’s daily active users decline for a second quarter in the United States and Canada, caused by user fatigue and growing competition.
Despite robust topline numbers, Facebook’s fourth-quarter earnings show a significant slow in growth and a second in a row decline for DAUs in its main markets.
Related | Facebook Launches Facebook News Portal In The UK
Facebook has a problem. Not one that will impact its business in the short term, but a growing concern for its future. During the fourth-quarter Facebook reported $28.07 billion of revenue. But while its global user base continued to grow, with 1.84 billion daily active users worldwide, there are serious signs of user fatigue in some of its core markets, the United States and Canada, where daily active users dropped from 196 million in the third quarter to 195 million in the fourth quarter.
It might not sound like much, but this marks the second quarter in a row with a DAU decline in the North American region.
The social media giant countered the loss with growth in the rest of the world, led by Europe who saw its daily active users grow to 308 million from 305 million.
In a statement, eMarketer analyst Debra Aho Williamson said the decline could be a reflection of increased competition from newer, shinier social platforms such as TikTok. “Facebook didn’t experience similar weakness in DAUs in other regions, which indicates that users in the US and Canada are starting to move their social time and engagement elsewhere,” she said. “One logical destination is TikTok, which has grown rapidly in 2020 and has some of the strongest user engagement, in terms of time spent, among all the social platforms we follow.”
User fatigue has been a recurring factor for Facebook. The platform is seen as stagnant, with no real innovation brought to users in the last few years. Add ot this an organic reach that continues to be annihilated, and many users, and brands, are now considering leaving the platform for good.
You might also like
More from Facebook
The Oculus Quest Platform Now Supports Premium Content Subscriptions
As VR content expands beyond gaming, Facebook is bringing support for subscriptions on the Oculus Quest platform.
Facebook Sparked Is A New Type Of Speed Dating App
Facebook Sparked, a video speed dating app, is being tested as part of Facebook NPE team's exploration of the future …
Facebook Brings Zoom Meetings To Portal TV
After adding support on Portal Mini, Portal, and Portal+ Facebook is now adding Zoom and GoToMeeting to Portal TV as …
It Cost Facebook $23 Million To Keep CEO Mark Zuckerberg Safe In 2020
Facebook has spent more than $23 million to guarantee Mark Zuckerberg's security in 2020, as revealed by a SEC filing …
Facebook NPE Team Introduces Hotline, A New Competitor For Clubhouse
Facebook Hotline is a slightly different take on Clubhouse that puts more power in the hands of attendees who can …
Facebook Is Testing QR Codes For Peer-To-Peer Payments In The US
In the US, Facebook has begun testing Venmo-like QR codes to facilitate peer-to-peer payments using its app.
Introducing Facebook Dynamic Ads For Streaming
Facebook has announced Dynamic Ads for Streaming - a new ad solution that will help streaming brands highlight their content …
Facebook Data Breach: Did They Get Your Data?
The latest Facebook data breach concerned over 533 million users. We help you check if your personal data was compromised.
You Can Now Control Who Comments On Your Facebook Posts
Facebook has introduced a new feature that lets you control who can comment on your posts when shared in the …