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Is the demise of Facebook on its way?
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Photo Courtesy of Facebook.com
The demise of Facebook; it seems like a rather "out there" thought don't you think? Well according to leading internet/tech industry site TechCrunch, Facebook's future is certainly in limbo.
As of late, the site is reporting major financial woes that comes as no surprise with the current state of the economy. Once valued at $15 billion, Facebook is struggling to keeps its head above water financially. The worldwide growth is undeniable but serving as a double edged sword, this growth may be doing more harm than good. With the additional users signing up on a daily basis, Facebook requires more storage and more money to keep the site afloat for all the countries and it seems the United States is the only country producing any type of ad revenue for the site. There has been a 118% growth in unique monthly vistors and 74% growth in page views. These numbers seem rather impressive but the US growth has only grown 32% within the last year. One could argue that those numbers all around are good but unfortunately it is not "good enough." As the US user growth slows down, their monetization methods seem more hopeless by the day since that is the one country that is heavily relied on from a financial standpoint.
Having raised over a half a billion dollars in the last couple years, these reserves are depleting at a faster rate than they imagined and as the economy slows, it certainly doesn't bode well for Facebook's future. One could hope that they come up with some more interesting ways to keep the site afloat, otherwise the future of social networking as whole may truly be grim.
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