Reuters/Ipsos Survey Finds Facebook Usage Down, Ads Not Influencing Consumers
June 8, 2012 at 5:57 AM (PT)
FACEBOOK is facing a long-term problem, as a REUTERS/IPSOS poll has found 80% of FACEBOOK users are not being swayed by advertising or comments on the social network. REUTERS also notes "the online poll also found that 34% of FACEBOOK users surveyed were spending less time on the website than six months ago, whereas only 20% were spending more."
FACEBOOK went public in mid-MAY (NET NEWS 5/18), and the stock has lost close to 30% of its IPO value. REUTERS found "about 44% of respondents said the market debut, seen by investors as troubled, has made them less favorable toward FACEBOOK."
A FEBRUARY study by eMARKETER had more bad news, finding FACEBOOK was weaker than e-mail or direct-mail marketing in influencing consumers. "It shows that FACEBOOK has work to do in terms of making its advertising more effective and more relevant to people," eMARKETER analyst DEBRA WILLIAMSON told REUTERS.
Despite the survey's findings, FACEBOOK has positive stories to tell, noting "case studies of companies such as NUTELLA, which found that a 15% increase in sales was attributable to FACEBOOK, and restaurant chain APPLEBEE's, whose FACEBOOK ads delivered a threefold return on investment."