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Facebook: whistleblower allegations of misleading audience size should be taken seriously

In many cases, businesses are slow to react to public turmoil.I didn’t do Travis Kalanick get off As Uber’s CEO until four months after whistleblowers exposed sexism in the company’s workplace. Tony Hayward did not resign as BP’s boss until three months after the Deepwater Horizon oil spill. Facebook’s latest fallout Public shame It can be as centered on user statistics as malicious expressions, not instantaneously.

For now, Mark Zuckerberg’s tenure looks safe. Facebook’s shareholder priorities became apparent on Monday when a long-term outage hit stock prices more than a burn exposure from former product manager Frances Haugen.

Investors can’t be surprised by the accusations that Facebook services are spreading discord. News articles have made similar claims for years. In the market, quarterly revenue growth of 56% year-on-year and operating margin of 43% seem to be more important.

However, there is one complaint that should give investors a pause. Haugen has sent a letter to the Securities and Exchange Commission to claim that Facebook is a “misunderstood investor and advertiser” about the accuracy of its user base. This is the foundation of the business, which accounts for 98% of Facebook’s revenue.

Haugen claims that Facebook knows that the number of young US users is declining with the growing popularity of rivals like TikTok. This tendency can discourage advertisers. But the claim doesn’t seem to include Facebook-owned Instagram.

She’s right that Facebook should stop promoting suspiciously clouded user numbers. Facebook itself estimates that 16% of accounts can be duplicate or false. This number creates a big discrepancy.Still Facebook does not adjust Important indicators Average revenue per user (Arpu), etc.

Arpu is an important number on social media. For Facebook, the number for the previous quarter was $ 10.12.

There are further discrepancies. Facebook includes all sources of income, but users are limited to Facebook and Messenger. Last year, I created a “family” figure for apps such as WhatsApp and Instagram. With this, Arpu in the previous quarter was significantly different from $ 8.36.

Investors have to put up with them unless advertisers reject these numbers or reduce their bottom line. Moreover, Zuckerberg holds most of the voting rights of the company. Even if marketing cracks begin to appear, it’s still a business for Facebook.

The Lex team is interested in hearing more from our readers. Let us know what you think in the comments section below.

Facebook: whistleblower allegations of misleading audience size should be taken seriously Source link Facebook: whistleblower allegations of misleading audience size should be taken seriously

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