Facebook’s advantages over other social media

Social media has changed the way people communicate with each other, the way companies conduct business, and the way they spend advertising budgets. As social media platforms gain tremendous momentum in the 21st century, Meta (FB), formerly known as Facebook Inc., has pushed itself to the top, surpassing competitors Twitter Inc. (TWTR) and LinkedIn Corporation in terms of users and revenue .

In 2004, Mark Zuckerberg, Eduardo Saverin, Chris Hughes, and Dustin Moskowitz launched a social media site in the Harvard dormitory, which later became Facebook’s social media site for High school and college students. It attracted 9 million users in the first two years of its establishment. In 2006, Zuckerberg rejected Yahoo’s $1 billion offer and did not list the company until 2012. The initial public offering (IPO) is one of the largest but disappointing technology IPOs in the past 25 years, raising $16 billion.

As of November 11, 2021, Meta’s market value was $935 billion, as the number of monthly active users soared to more than 2.91 billion, and advertising accounted for 98.8% of the company’s total revenue in 2020.

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Compared with LinkedIn (310 million) and Twitter (192 million), Facebook’s competitive advantage stems from its absolute number of monthly active users (MAU).

The rulers of social media keep their distance from their competitors in the following ways.

advertise

Due to the huge number of users on the platform, it would be an oversight for companies to give up digital marketing. Small businesses account for the vast majority of Facebook’s 8 million advertisers. Facebook’s advertising revenue in the third quarter of 2021 was $28 billion.

Facebook has a lot of user data and is very effective in targeted marketing. Widespread advertising targeted at men, women or baby boomers has given way to customized methods. Facebook’s ubiquitous single sign-on box allows marketers to track purchases and other meaningful interactions through third-party websites.

In other words, the company was under scrutiny due to a data privacy scandal. In 2017, Cambridge Analytica, a political consulting and strategic communications company, collected personal information on up to 87 million users on Facebook. Cambridge Analytica is the company behind the Brexit movement and Donald Trump’s 2016 presidential campaign.

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Despite this notorious incident, Facebook still endures the rise of mobile advertising.

Mobile trend

With the Messenger app launched by Facebook in 2011, mobile apps accounted for a large part of Facebook’s rapid growth. As of 2020, the number of monthly users of Messenger is estimated to be 2.77 billion. Facebook bought its competitor for US$19 billion in 2014 instead of competing with WhatsApp, a mobile market competitor, which attracted another 1 billion users.

As of 2020, smartphone users usually spend about 4.2 hours on their phones every day. More than 40 applications reside on a typical smartphone, and an estimated 18 applications account for 89% of daily use. Among all users in the world, Facebook is the third most popular application.

got engaged

Facebook defines “engagement rate” as the percentage of people who view a post and like, share, reply to, or comment on the communication. In other words, when a large number of users responded in a targeted manner, the post had some meaningful impact on the audience’s psychology.

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For ordinary users, these reactions are inseparable from themselves, but for companies, the participation rate allows them to gauge the pulse of potential buyers. Users can scroll through the catalog and comment on products and services. Subsequently, the company obtained a large number of potential customers and repeat customer data, thereby improving the marketing strategy.

Bottom line

Facebook is at the top of the social media game because its platform caters to all kinds of people and incorporates many different media aspects, from photos to messengers to text. It is not as limited as LinkedIn and Twitter, they usually cater to specific groups of people.

Because of its wide appeal, Facebook has attracted a large user base, which translates into advertising revenue. Because the company wants to spend its advertising budget on the platform with the highest ratings and has 2.91 billion monthly active users, it is difficult to surpass Facebook.

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