Twitter, the social media company, has been using the platform to send messages, tweet pictures and upload video.
But as Facebook and other social networks continue to expand their offerings and offer services for free, Twitter is losing the market.
The social network’s growth has slowed as users flock to apps like WhatsApp and Snapchat.
Twitter is now the most used online service in the United States, according to the company.
But that’s not necessarily good news for its business, which depends on advertising revenue.
A new report from the technology research firm IDC forecasts the company’s revenue will decline by 20% to $7.4 billion in the year to 2021.
Facebook, which last year reported its fourth quarter revenue of $13.6 billion, is expected to report an even larger $9.6 bn.
Facebook has made great strides in building out its app ecosystem and is looking to monetize its network of users in a way that makes it a more compelling online platform.
In an article titled Facebook’s growth stalled as people flock to social media, the tech research firm predicts the company will miss its $7 bn revenue target by 20%.
“While growth has been steady and robust, the overall pace of growth has plateaued,” IDC wrote.
“As users continue to switch from Facebook to Snapchat, and other platforms, Facebook is likely to be hit by an onslaught of new entrants that will likely be more disruptive to its existing user base than Facebook itself.”
IDC predicts that the growth rate for the company in 2021 will be just under 5%.
While the decline in growth rate may seem small, Facebook’s business is in big trouble.
For a start, it has struggled to convince users to pay for its services.
Its average monthly users are just shy of 30 million, down from 40 million in 2015.
“Facebook has been losing users to new apps that have higher subscription fees than Facebook’s offerings,” says Tim Cook, Facebook founder and CEO.
Facebook’s revenue is also expected to decline by 10% to a total of $6.5 billion in 2021, according the IDC report.
The company will need to find ways to offset the losses from the loss of its core business, and it will have to make more aggressive acquisitions to increase its revenue.
For instance, it may need to sell off its advertising business to more directly compete with Google.
In the meantime, Facebook faces a number of problems, according as IDC’s research.
First, Facebook has lost its competitive advantage in mobile search.
Facebook and its competitors have more than tripled the share of mobile searches that are mobile-centric, and the social network is lagging behind.
Facebook is also facing pressure from regulators around the world.
Earlier this month, Google pulled out of its planned partnership with Facebook to allow people to use its search engine in Russia, citing data security concerns.
Second, Facebook needs to get rid of some of its excess inventory of mobile phones and tablets, which it had purchased in recent years.
Facebook had bought more than $600 million worth of devices in the past year.
That included more than 100,000 smartphones.
Third, Facebook must make more moves to improve its advertising capabilities.
Its ads are still pretty weak, with just 9% of total ad revenue coming from the company, according IDC.
The new report notes that Facebook’s ad sales are declining year over year.
IDC expects Facebook to report $9 billion in revenue in 2021.
Google, meanwhile, is likely hoping to increase revenue by 30% to 40% from the current level.
“Google’s revenue outlook has been very much a product of its long-term growth and its continued expansion of its mobile ad offering,” Tim Cook said.
“The rapid growth in mobile is driving a lot of Google’s advertising revenue, but we expect the company to continue to add revenue from ads on mobile, with the most likely areas to be ads on Facebook.”
In terms of growth, IDC believes Google will see an increase of 25% to 50% in total advertising revenue by 2021.
It says that Google will report a $1.4 bn operating profit in 2021 and $1 billion in net income.
Google will also report a net income of $1 bn, IDT reported.
Google’s growth rate is also projected to drop to 4% in 2021 from the 7% that it has in 2021 to date.
Google has also seen an increase in the amount of traffic to its search ads.
The data firm estimates that Google’s search traffic grew from 4% of the total traffic in 2021 up to 7% in 2020.
IDT said that while Google’s traffic grew by 10%, its search revenue grew by 20%, and its mobile search traffic declined by 12%.
IDT says that mobile search ad revenue is expected increase by 20%-25% in the next few years, but it expects that growth to slow down.
“In addition, Google will continue to struggle with search performance, especially when compared to rivals,” IDT’s report said