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18.6.12


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 to consider…

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