Facebook losing out to YouTube in battle for user engagement
This January, Facebook lost ground to Alphabet, as users increasingly flocked towards YouTube “and other Alphabet Inc. properties,” according to Nielsen digital consumption data. Brian Wieser, a Pivotal Research analyst who reviewed the data, said that Google properties now account for 27.4% of “all time spent on digital media.” That’s a 3% increase from the previous year. Meanwhile, Facebook, which is currently undergoing scrutiny over the Cambridge Analytica scandal, has seen a 2% decrease in the same period, and now accounts for 16.3%.
Alphabet’s share price has risen by 25% over the past 12 months
SOURCE: Yahoo Finance
This is bad news for Facebook, which relies on users making regular trips to its social network in order to collect on-the-minute information about their preferences. This information is then used to target advertising, and as such, is the engine behind the company’s business model.
According to Weiser: “YouTube accounts for half of all Google activity and continues to draw consumption well in excess of 20% year-over-year every month.” Other Google properties also grew to the tune of 33%.
This is great news for Google, but it is hardly the worst thing happening to Facebook. The latter company’s CEO, Mark Zuckerberg, spent two days defending his company’s practices to the Senate this week. The company continues to occupy a spotlight when it comes to concerns relating to online advertising, that may well push more advertisers off its site. Once more: great news for Google.
Dominion holds Alphabet in its Global Trends Ecommerce Fund.
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