Facebook Inc. (NASDAQ:FB) is making its newsfeed even more intuitive. This might be something Twitter Inc. (NYSE:TWTR) and Google should keep in mind, as least in terms of rising competition in the news feed space. Even though some reports have shown young people (such as teens) leaving the site because ‘mom’s’ using it; there are other studies conveying increased engagement for there 1.28 billion users.
In fact, at the end of March, Facebook’s users have a 63 percent login rate (on a daily basis), and at least 50 percent check in six days per week. Not to mention, Facebook’s stock prices and valuation have been mostly positive since 2013. So, what does this all mean?
Facebook’s stock received an uptick in response to its increased mobile presence. After its disappointing IPO, Facebook saw the writing on the wall, and it made the necessary changes. Moreover, Facebook’s digital ad revenues are expected to move to 7 percent this year. That is up from 6 percent in 2013. It also has a claim on 15 percent of the world’s mobile ad revenues.
It would behoove Facebook to keep up that momentum, and it seems that it is. So, advertisers are responding to the the news of improved engagement and a smarter news feed. Since the mid-2000’s, Facebook has successfully positioned itself as something that people consider a part of their lives. Families and friends use the site to stay in touch.
This is not the case for sites like Google+ and Twitter. Even though Google is one of the world’s most valuable companies, they have still not been able to emulate Facebook’s social networking reach. Not to mention, Facebook does not put a limit on the number of characters you can post, which makes Twitter seem just a bit restrictive.
So, Facebook takes into consideration a combination of your user actions to predict things you might actually like. It uses that data to feed relevant ads and news items. It has not always been a smooth road for Facebook. They have had their share of privacy concerns and discontent coming from its users. But, its consistent improvements and data mining are starting to give Twitter and Google+ a run for their money.
