Facebook will be making an announcement tomorrow regarding a complete overhaul in the design of their News Feed in hopes of keeping users continuously engaged with the social network and bringing in more advertising dollars. The redesign will try to make the News Feed more relevant to a user when logging in.
Facebook hasn’t made any comments yet on the redesign – the announcement will be made at their headquarters in Menlo Park, CA. The adjustments that the company is looking to make will be a fine balance – on one hand they want to draw users to their site, but they need to make sure that they don’t alienate them with advertisements that are too targeted.
The pressure is on for Facebook which has been under performing as to expectations by analysts on Wall Street. Last may the company was valued at $38 a share, slumped down to half its value last fall, and while it has gone up a bit since then, hasn’t been able to break $30.
Facebook is also facing an uphill battle, with about 60% of users taken a sabbatical from the social networks, and even worse, 20% deactivating their accounts. The top reason cited according to the Pew Research Center was boredom.
In addition, Facebook is facing challenges from other social networks which are becoming increasingly popular; Pinterest is a great place for people to share information in easily digestible photos; Tumblr is a place for self expression; Twitter is growing as the platform of choice for entertainment and news.
The biggest challenge for Facebook though is that a lot of people don’t personally know many of their ‘friends’ which will make it difficult for the company to push relevant content into the News Feed.
It’ll be interesting to see what specific changes Facebook will be announcing and how they will implement those changes to their News Feed.