By Shawna Gillen

Brands and organizations are looking to other platforms in the social stratosphere in the year ahead, as recent data suggests that Facebook’s ad revenue is taking a nosedive. YouTube has become the top contender, with their engagement rate 20 times higher than that of Facebook. Why the shift? Consumers love visuals, and Facebook is not fulfilling that need any more.

The main problem associated with Facebook’s poor advertising is the lack of consumer interest.  According to a recent study, courtesy of metrics think tank Edgerank Checker, a company’s advertising post on Facebook may only reach 6% of their fans. In other words, if an organization has 1,000 likes on their respective page, only 60 people will potentially see the post. Needless to say, businesses have been flocking to YouTube for some saving grace. Facebook has failed to circulate posts and ads effectively, and organizations are fleeing.

According to this infographic, YouTube has a higher likelihood of Internet Users creating an account, with 52.3 % to Facebook’s 43%. Simply put, more membership is more exposure for ads, providing significant potential for increased revenue.

This advertising transition is also indicative of another trend in consumer demands, in that Facebook is no longer the top social media site. Consumers are driven by entertainment, and Facebook is not that outlet. Rather, instant access to visuals can stimulate a viewers interest for much longer. Needless to say, it is completely justifiable for businesses to want to increase their consumer bases. Is this a premonition of Facebook’s demise? For now they will potentially lose billions of dollars from business investors, and YouTube will be picking up the slack.

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