By Hasan, | January 02, 2017
Facebook could struggle to increase its revenue this year. (geralt)
With an astronomical figure of 12 million users each day, Facebook has an ever-growing revenue. The company invested heavily in itself in 2015, but in 2016 the social networking site saw a decline in its profit. The company's revenue might further decrease in the coming years.
Facebook's opportunity for growth is not the same as when it was in its initial years. This is because there are only so many ads that can be displayed on a single Facebook page.
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According to The Barron's Next, the problem is what's referred to as the "ad load." It simply means that the company is running out of places to show advertisements. Facebook is trying its best to increase its reach by marketing itself to attract maximum possible users.
Another problem that Facebook is facing is related to monetizing its assets. In 2014, Facebook bought the messaging application, WhatsApp, for $19 billion. Facebook has started receiving information about WhatsApp's users since it was not making any serious money from WhatsApp primarily. This will help in better-targeted advertisements. Facebook can also monetize its Messenger to rake in more revenue in 2017.
Perhaps the most serious issue is the loss of trust in Facebook with the fake scandal, Finanzen reported. Facebook's recent growth is not as impressive and it will need to employ novel ideas to get its business seriously.
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