Well-being Prioritization Causes Facebook to Suffer User Count Decline in U.S.

Published By : 01 Feb 2018 | Published By : QYRESEARCH

Facebook CEO Mark Zuckerberg revealed that time spent on the social media site has declined by an approximate 50 million hours a day in Q4 2017 since the company brought changes to news feed. In an effort to improve the well-being of its users and reduce the presence of viral videos on its site, Facebook may have suffered the loss but it has been deemed to be temporary by CFO David Wehner. Wehner says it is not a trend but just a one-time decline. The U.S. and Canada saw a reduction of a whopping 700,000 daily active Facebook users due to the prioritization of well-being and viral video changes.

Not Changes-related Decline, but Slower Global DAU Growth to Give Investors Pause

Zuckerberg later in his announcement said that time spent on Facebook decreased by a 5.0%. Given that the social media site currently has a 1.4 billion users, if the per day per user reduction is to be determined, it would be roughly 2.14 minutes. This added up to a reduction of 1 million daily active users from a 185 million in the U.S. and Canada. That’s probably the first time that the company has announced a decline in user count for any region, and it’s the one which provides the most earnings through advertisements. In comparison with the US$6.18 global average revenue per person, the region has helped the company to earn an around US$26.76.

Even if the 700,000 users hadn’t been lost from the U.S. and Canada region, Facebook may have still faced a slower QOQ daily user growth at a 2.24%. In fact, the 2.18% growth is significantly slower than its previous nastiest quarters, i.e. Q4 2015 and Q4 2016.

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