0 views posted 14 Jun 2012, 11:57
According to the recent poll, 80% of Facebook users have never
bought anything advertised on the social network. In fact, the
survey states the obvious: people aren’t using Facebook to buy
something or get informed, they are rather killing time. There’s also
another phenomenon revealed: Facebook fatigue. Around 34% of
Facebook users admitted to spending, or wasting less time on Facebook than 6 months ago.
Meanwhile, Facebook’s controversial IPO didn’t go down well with
its users either, because 44% claimed it made them less favorable
toward the social network, says Reuters. So, all of this doesn’t bode
well for the network, because it tries to find out how to translate its
huge user base into actual profits. The fact is that people aren’t
spending on Facebook, and don’t care about advertisements or comments, which means that Facebook has yet to develop a
revenue generating model in the mobile space.
Moreover, the growth is slowing down and it has to, like mobile
phone penetration in the developed world a decade ago. There are
just not enough people to target with advertising, because more
and more of them are now from the 3rd world. Meanwhile, the
social network refused to comment on the poll results, but pointed
to previous reports saying that Facebook advertising campaigns were successful earlier.
After the IPO, the company’s business model came under even more
scrutiny, though it would have been a right way to scrutinize the
model before small investors pour their retirement savings in
Facebook stock, hoping that they are investing in the next Google or
Apple. In the meantime, the notion that Facebook would eventually
cash in on what actually amounts to the biggest information mining operation worldwide seems to be wearing off.
Although targeted ads may sound like a good idea, they can also
backfire, because Internet users aren’t that keen to see personalized
advertisements on their page, in some cases with awkward or
downright embarrassing material. Instead, it can be regarded as a
tricky balancing act between delivering proper targeted advertising
and bad taste. Thus far, the largest social network in the world doesn’t seem to be making this work. So, Zuckerberg has something