Facebook's business model is coming to an end, beset by problems

Absrtact: Facebook's business model is coming to an end, beset by problems. This week, Facebook unveiled a new social search engine that you can use to find out if your friends like a movie. Unfortunately, users cannot be sure that the search

Facebook's business model is at an end, beset by problems.

This week, Facebook unveiled a new social search engine that you can use to find out if your friends "like" a movie. Unfortunately, users cannot be sure that the results of the search are real and, of course, for advertisers.

Fake "like" makes advertising business

Bernard Meisler, a technology blogger ReadWrite, wrote about Facebook's fake "likes" Bernard Maister.

Bernard mentions that his pen pal, Brandon Omali (Brendan O ' Malley), was surprised to find his old friend, Alex Gomez (Alex Gomez), on November 1, 2012 "like" The Discovery Channel when he browsed the Facebook page. In fact, Alex didn't like the Discovery Channel, and he died on March 26, 2012 or 27th.

The events not only embarrass Facebook, but also embarrass the Discovery Channel. Users soon discovered that Facebook-sponsored stories had no credibility, and that once the credibility was lost, it was hard to reinvent the envelope.

The problem of advertising benefits

One of the advertisers ' own research suggests Facebook is charging it with bogus clicks. The Advertiser did not accuse Facebook of being a source of false clicks, because anyone, including Facebook, could have made false clicks, but it was adamant that Facebook would charge them with false clicks.

The result is disappointing, and the result is that other advertisers are cutting spending. GM, the US's third-largest advertiser, has reportedly given up on a 10 million-dollar ad at Facebook, while entertainment companies have adopted a similar strategy. Film executives are also considering cutting advertising spending, and they are also annoyed by some of Facebook's actions.

Facebook is an advertising-dependent Internet company. The cost of attracting and retaining users is increasing, while per-user income is declining.

Exaggerated flow data

Facebook appears to have exaggerated its real number of users in its initial public offerings, and the problem is still there. Earlier, it was mentioned that Facebook had 1 billion users, but in fact it might not be 500 million.

Facebook has a great deal of fraud, deception and an exaggerated number of users. If Facebook wants to prove that it does have 1 billion active users, it must justify the data that appears to have been brutally exaggerated. However, this looks equally unconvincing.

Advertisers can neither guarantee that advertisements can be targeted at real people, nor do they guarantee that so-called "likes" are real, so they can only rely on themselves to verify that the charges they charge are not from false clicks. Of course you have no reason to believe that the so-called advertising effect of Facebook is reliable. Interestingly, seasoned advertisers such as General Motors are not bullish on Facebook, but advertising on Twitter.

Compared with Tumblr, Facebook is unpopular with people under the age of 25.

According to the Y Combinator survey, 61% of young people aged 13-18 often use Tumblr, and only 55% say they often use Facebook. In addition, 57% of young people between the age of 18-25 often use Tumblr, only 52% of people often use Facebook, indicating that young people prefer Tumblr.

According to Socialbakers, 1.4 million Americans stopped using Facebook last December. Although it claims there are 167 million users, who knows how much water there is?

Adblock plus intercepts all ads in Facebook's Android client

If the statistics are not bad for Facebook, then Android Adblock Plus can block Facebook's ads in all apps as a bad news.

The bottom line for investors

At the moment, Facebook's revenues are not enough to offset accounting losses, and its business model cannot be matched by a higher rating because it does not show the world a viable growth strategy. After accounting for taxes, Facebook has suffered losses since its initial public offering, in accordance with U.S. GAAP. Worse still, Facebook lost customers in the competition before discovering new revenue streams.