The Changing Face of Facebook Users

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Oct. 31 (Bloomberg) –- On today’s “Big Story,” Bloomberg's Jon Erlichman, Techonomy's David Kirkpatrick and Mashable's Christina Warren discuss the changing face of Facebook users. They speak with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

"we did see a decrease in daily users among younger teenagers." that is not good.

Is facebook losing the next generation?

Let's ask our final -- panel.

David kirkpatrick, the media found under -- founder and author of "the facebook affect." you ran us through those numbers, jon erlichman.

As we talk about basically kids leaving facebook, what are the numbers that jut out?

A few different ones.

You are right.

It is a u-turn.

We were saying $2 billion in revenue.

Everything was firing.

And yet to those comments changing the sentiments.

The challenge with the story, they fell to the need to share that information.

It was not like somebody was prodding for them.

I felt the need to share because people are curious.

I have been some studies done that tell you the trend has not been a friend to facebook.

There was a survey this fall about what teenagers see as the most important social network for them.

This time it was more than 40% and now it is about half that.

Surveys suggest more teenagers feel like snap chat is the place to be and others feel like instagram is the place to be.

That is a nice hedge for facebook.

The fact they paid a lot of money for instagram and now at least if the trend is against them on facebook, in their favor with instagram.

David kirkpatrick, you wrote a book, a little less effective these days?

Not at all.

I think you're wrong to say the big story about teenagers losing interest.

Facebook is a financial machine.

This is a quick thing.

Facebook is less than 10 years old.

It is an $8 billion revenue runway.

Every number was up, even daily active users, which is a critical number.

The sentence he said is odd because we did see a decline in daily active users on teenagers but in fact, daily active users over all went up 25% year on year.

But this astonishing.

What if it is old guys like you and me?

Let's say the big story was teenagers.

The media is focusing on this because it is the one chink in the potential armor.

But they do own instagram.

That is the thing young kids are most excited about.

They have done a good job managing their business.

Help me out.

David tells me i'm missing the point.

I think people do need to be aware of it.

What are you teenagers going to do when they become old enough?

We ran an article from a 13 month-year-old who said none of my friends use facebook.

Her parents are there.

Kids don't want to share information where their parents and their parents' friends can see things.

Instagram was one of the best investments facebook could have made but to also look at snap chat -- where all of the bad stuff disappears.

Everybody can sext in peace.

The challenge is creating themselves, not acquiring, but creating a social network that is not necessarily attached to facebook that teenagers can jump onto and say this is where we want to be.

So they have 1.1 2 billion viewers.

1.19. i do not want to short them.

If they were a country, it would be the third-largest.

So they have the eyeballs.

The question is, how do they go beyond advertising?

Is it a facebook bank?

That is an interesting question.

I think they could get into transaction and getting a cut out of transactions.

It is certainly something they think about.

Advertising is their business.

I have a chapter about how sheryl sandberg came into the company.

They did not know what business they were in.

They did not know where to get money.

She identified it will be advertising.

It took them three months to figure that out.

In fact, they are going to make the ad more and more relevant and not annoying.

That is the opportunity to make money to charge more.

They are not going to show us more.

If they can't do that, that is the thing people should get worried about.

I don't see any sign they can't do it.

I agree.

Facebook has, other than google, more information about all of us.

Better than google, it has the perfect demographic mix, which means they can get a product that is not annoying to users and deliver not only the most relevant ads, but the most contextually relevant.

It can be location-based.

That is a huge opportunity.

Instagram is going to run ads soon.

That is a huge revenue opportunity as well.

If you say where you are and you have local businesses saying come on by -- there's a lot of talk about twitter right now.

Twitter is a nakedly mobile app but it does not have that much information about users.

It can't target as well as facebook can.

Facebook has a targeting ability that is really almost like no other business has ever had in history.

The only thing that is analogous are credit card companies who do not have the right.

So facebook has incredible potential to make more and more money.

If you look at the curves, since the

This text has been automatically generated. It may not be 100% accurate.

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