Among the hundreds of online social media sites on the Internet, sites that compete directly with Facebook (FB) include Instagram, Snapchat (SNAP), and LinkedIn (LNKD). These social media companies continue to grow their audience and expand reach.
Instagram is possibly the largest competitor that Facebook faces, even though Instagram is now owned by Facebook. Instagram is more popular with teenagers and tweens, because it’s simpler, more private and very visual in nature. So while FB isn't competing with Instagram for revenue, it is competing with it for users and the time those users spend on social media platforms.
Facebook has expressed concern about the rise of Instagram, since the younger generations will steer the social media trends. Teens appreciate that their viewers aren’t the many relatives they’ve connected with on Facebook, and they value the fact that they can express themselves easily on Instagram.
Snapchat continues to be popular, because it allows users to reach out only to the few people that they've selected, and not all their friends at once. To use Snapchat, you send a picture that the recipients are able to view for a short period of time. The picture then vanishes never to be seen again. This allows teenagers and people of all ages a level of privacy without worrying that the images might resurface at a later time.
LinkedIn is a professional site that isn’t as popular as Facebook, but it is the main platform for professional profiles and recruiting. Companies use LinkedIn to find potential applicants, and applicants use it to find new jobs. This indicates that LinkedIn could present a picture of the future of the hiring process. Having a LinkedIn profile could easily become a necessity for people seeking employment in the future.
Alphabet's (GOOGL) Google has attempted to acquire Facebook users through it's social media platform, but its user rate is paltry compared to FB's count. Both companies compete heavily in the internet advertising space, as they battle for market share.
Twitter (TWTR) also competes with Facebook for users and their engagement, but the nature of Twitter makes it less of a direct competitor than some of the other main social networking companies. Twitter does rely heavily on advertisement dollars for revenue.