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Why 2019 will be Facebook’s year of reckoning – and how it can fix it
The social network will see declining growth rates if not an outright downward trajectory this year unless it makes two specific and significant changes. Sure, the total number of daily active users (DAUs) is increasing. But look more closely. The number of US and Canadian DAUs has remained flat for a year. Growth has stopped. In Europe, the number has declined since January 2018. DAUs are growing only in other parts of the world. Average revenue per user is more than $27 in the US and Canada and almost $9 in Europe all places where usage has stopped growing or declined. Where Facebook use is increasing, the ARPU is $2.67 at most. The decline in rich, developed countries and growth in poor, developing countries do not bode well. Squeezing more and more ad clicks out of rich westerners will only work for so long because ad blocker use is increasing.
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