Survey Shows Facebook Adverts Not Converting Users
An online poll by Reuters and Ipsos Public Affairs has brought disappointing news for Facebook - four out of five users (80%) of the social networking site have never bought a product or service as a result of advertising or comments on the social network site.
In addition, 34% of the users polled say they are now spending less time on the platform than six months ago due to 'Facebook fatigue'.
This comes at a time when following their listing on the stock exchange, Facebook is desperate to capitalise on its 900million customers. While the site generated $3.7billion in revenue last year, their sales growth is now slowing.
The findings highlight investor concern about Facebook's money-making abilities, which has seen their stock drop 29% since they first went public last month and represents a reduction in market value by $30 billion.
Meanwhile, a February study by research firm eMarketer demonstrated that Facebook fared worse than email or direct-mail marketing in terms of influencing consumers' decisions.
eMarketer Analyst Debra Williamson commented: "It shows that Facebook has work to do in terms of making its advertising more effective and more relevant to people."