Lounge raises funds to capitalise on Facebook’s Gen Z ‘decline’

As first reported by UKTech News, Lounge has raised funds to expand its social media platform.

The UK-based start-up aims to provide a safer and more positive online space for young people by offering a range of features that promote well-being and creativity.

Lounge’s move comes as Facebook struggles to retain its Gen Z audience, with many young people turning to alternative platforms such as TikTok and Instagram.

According to a report by The Guardian, social media is particularly damaging to the mental health of Gen Zers, with many experiencing anxiety, depression, and low self-esteem as a result of their online activity.

While millennials reported being more active on social media, Gen Z spends the most amount of time on the apps, but more passively.

This has led to concerns about the impact of social media on young people’s mental health and well-being, and the need for alternative platforms that promote positivity and creativity.

Lounge’s platform offers a range of features designed to address these concerns, including a focus on community building, creative expression, and well-being.

Users can connect with like-minded people, share their creative work, and access resources and support to help them manage their mental health.

With its fresh approach to social media, Lounge hopes to attract a new generation of users who are looking for a more positive and supportive online experience.

Startup News UK

Lounge’s Fundraising and Strategic Move

Lounge, the UK-based café/bar chain, has recently raised over £350,000 for good causes through its fundraising campaign.

The company’s total donations have now reached £610k since 2019. Lounge’s recent fundraising efforts come as the company seeks to capitalise on Facebook’s declining popularity among Gen Z.

Leveraging Facebook’s Declining Popularity Among Gen Z

According to a recent report by Pew Research Center, Facebook’s user base is ageing, with younger users increasingly turning to other social media platforms such as Snapchat, Instagram, and TikTok.

This trend has been particularly pronounced among Gen Z, with only 51% of US teens between the ages of 13 and 17 using Facebook in 2021, compared to 71% in 2015.

Lounge’s CEO, Devin Walsh, sees this as an opportunity to target younger demographics outside of Facebook. “We recognise that social media is a critical tool for engaging with our customers, particularly younger demographics,” said Walsh.

“However, we also recognise that Facebook’s declining popularity among Gen Z presents an opportunity for us to reach new audiences through other platforms.”

Plans for Capitalisation

In addition to its fundraising efforts, Lounge is also planning to capitalise on the growing demand for social media alternatives among younger demographics.

The company is exploring partnerships with other social media platforms, including Snapchat, Instagram, and TikTok, to reach new audiences and drive engagement.

Lounge’s strategic move comes at a time of increased competition and government scrutiny in the social media space. Meta, Facebook’s parent company, has faced mounting criticism over its handling of user privacy, hate speech, and misinformation.

Meanwhile, other social media platforms such as Twitter and Reddit are also facing increased scrutiny over their handling of user demographics and marketplace practices.

Despite these challenges, Lounge remains optimistic about its growth prospects and its ability to reach new audiences through social media and other digital channels.

“We believe that our focus on customer engagement, innovation, and strategic partnerships will enable us to continue to grow and thrive in the years ahead,” said a spokesperson for Lounge.

Impact on Social Media Landscape

Social media platforms have been the go-to place for communication, entertainment, and social discovery for over a decade.

However, recent events have led to a shift in user demographics, with younger users moving away from established platforms like Facebook.

Shift in User Demographics

According to Insider Intelligence, the events of 2022 have reshaped social media in multiple ways.

Economic challenges and self-inflicted wounds have weighed on Meta, the parent company of Facebook. Ad revenue growth has recovered to 8.2% this year after a historic 2.0% decline in 2022, but that won’t be enough to reverse its declining share.

As a result, younger users are turning to newer platforms like TikTok and Instagram Reels, which offer a more engaging and interactive experience.

Potential Challenges and Opportunities

The shift towards newer platforms has created potential challenges and opportunities for businesses and marketers.

On one hand, the algorithm-driven nature of these platforms makes it harder for businesses to get their message across.

On the other hand, the increased focus on video content and private messaging has created new avenues for businesses to connect with their target audience.

Privacy concerns have also played a role in the shift towards newer platforms.

The rise of artificial intelligence and the increased use of private messaging has led to concerns about data privacy and security.

As a result, newer platforms like TikTok and Instagram have focused on creating a safer and more secure environment for their users.

Overall, the impact of the shift in user demographics on the social media landscape is still unfolding.

As younger users continue to move away from established platforms like Facebook, businesses and marketers will need to adapt to these changes to stay ahead of the curve.