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Poll: Facebook Advertising Doesn’t Work

From Reuters:

Facebook comments, ads don’t sway most users: poll

By Alexei Oreskovic
June 4, 2012

SAN FRANCISCO (Reuters) – Four out of five Facebook Inc users have never bought a product or service as a result of advertising or comments on the social network site, a Reuters/Ipsos poll shows, the latest sign that much more needs to be done to turn its 900 million customer base into advertising dollars.

Which means that one of out five has bought something advertised on Facebook. Which seems pretty good, if you ask us.

The online poll also found that 34 percent of Facebook users surveyed were spending less time on the website than six months ago, whereas only 20 percent were spending more.

The findings underscore investors’ worries about Facebook’s money-making abilities that have pushed the stock down 29 percent since its initial public offering last month, reducing its market value by $30 billion to roughly $74 billion.

Why are they even worried about money, anyway? We thought all that mattered is creating jobs?

About 44 percent of respondents said the market debut, seen by investors as troubled, has made them less favorable toward Facebook, according to the survey. In the May 31-June 4 poll of 1,032 Americans, 21 percent said they had no Facebook account

21%! How shocking. (Something tells us the number is in reality a heckuva lot higher.)

About two out of five people polled by Reuters and Ipsos Public Affairs said they used Facebook every day. Nearly half of the Facebook users polled spent about the same amount of time on the social network as six months ago…

"Facebook continuously has the challenge of Facebook fatigue, of the novelty factor wearing off, and therefore they have to introduce new kinds of interaction," said Valdes

While Facebook generated $3.7 billion in revenue last year, mostly from ads on its website, sales growth is slowing.

Consumers’ increasing use of smartphones to access Facebook has been a drag on the company’s revenue. It offers only limited advertising on the mobile version of its site and analysts say the company has yet to figure out the ideal way to make money from mobile users

You have to wonder why Reuters did this poll in the first place. It sure looks calculated to hurt Facebook. Maybe they are trying to help the Obama campaign in their war on the rich and businesses in particular.

However, Twitter does not seem to offend Obama. As we have this news from the Politico:

Obama tweets for Barrett

By ALEXANDER BURNS
6/4/12

After staying conspicuously absent from the Wisconsin gubernatorial recall election, President Barack Obama finally engaged tonight — with a short message on Twitter signed with his initials:

‏@BarackObama It’s Election Day in Wisconsin tomorrow, and I’m standing by Tom Barrett. He’d make an outstanding governor. -bo

Isn’t that impressive? It really shows quite a commitment from Obama for what everyone is calling ‘the second most important election of the year.’

Obama couldn’t be bothered to campaign for Barrett because it might hurt his ‘optics’ when Barrett loses. Besides, he might miss a fundraiser.

Still, we hope the unions and the rest of the Democrats are taking note. Nothing matters to Obama but his own re-election.

This article was posted by Steve on Tuesday, June 5th, 2012. Comments are currently closed.

One Response to “Poll: Facebook Advertising Doesn’t Work”

  1. GetBackJack says:

    Facebook made a strategic error.

    In monetizing.

    Should have brought in the masters of monetizing nothing into something, the Progressive Billionaire Fear Machine.

    Al Gore, Soros, Maurice Strong monetized how our climate fluctuates by generating an atmosphere of fear.

    Facebook has not figured out how to monetize gossip.

    If anyone can, it’ll be progressive billionaires who hate capitalism but love money.


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