Facebook in Decline

Facebook has seen consistent growth over the past few years, but it has recently seen this growth peak. The number of users is now declining, down nine million monthly users in the United States. The number of minutes that Americans spend on Facebook has also declined; however, growth in India and Brazil has increased. It is possible that growth has stopped in America due to Facebook reaching its peak and that other countries are still catching up.

Another explanation offered is the adoption of smart phones in Brazil and India which in turn has led to adoption of Facebook as a mobile app. This pattern is similar to the idea of information cascades and adoption of technology in networks: as more people buy smart phones and begin using Facebook, it becomes more beneficial for others to do so as well, especially if the initial users are friends of later adopters. Adopting Facebook on new smart phones has a higher benefit as more friends join and can derive value from being able to interact with each other on the site.


One thought on “Facebook in Decline”

  1. Large success of other social networks is decreasing the overall usage of Facebook. As people switch over, there is a a cascading effect because the point that makes Facebook successful is that others are using the service. That being said, new usage from India and Brazil will create a cascading effect in those countries.

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