It's A Tough Time To Be Facebook

THEY'RE IN SOME BIG LEGAL TROUBLE – HERE'S WHY THAT MATTERS

The FTC and 48 state Attorneys General are suing Facebook – so what?

Any actions taken by the lawmakers will take years to have any real impact, but this could be a big negative step for Facebook. Despite the fact that Facebook offers perhaps the greatest advertising platform in the history of the world, like any other media company, their core business is attention. Facebook attracts attention to its various newsfeeds, then sells it to advertisers.

This year we've already seen a trend away from newsfeeds in general, and Facebook specifically. Small towns and suburbs are still super active on Facebook, but the typical early adopters are spending their time elsewhere. More negative press around government action against Facebook, including some of the inevitable backlash that will come along with it, can only encourage that trend to other social apps. In 2021, people will be spending more time than ever on their devices, but there are so many more options available to battle for that home screen real estate that Facebook's dominance may soon start to give way.

What matters most about the Facebook cases is not who wins, but how public opinion shifts as a result. No matter how advanced the technology is, no one wants to advertise to an empty newsfeed.

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Written by Conner Galway, Junction Consulting