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Many Facebook users don’t click on adverts

With Facebook’s initial public offering (IPO) going ahead, shares in the company have been going for $38 each – generating billions for the company.

It is the biggest IPO for an internet-based company ever, even beating Google. Everybody’s favourite search engine only managed a pitiful £1.67 billion with its flotation.

OK, so it’s not exactly pittance, but Facebook is set to blow that out of the water. The social networking site is now valued at more than $100 billion.

Change for the worse?

While the flotation will generate plenty of funds for the company, there are fears it could change the social networking site for the worse.

Hard-nosed investors will want to see a return on their investment, so we can expect to see more adverts – especially on the mobile version.

But will they ever see a decent return on investment. The site may have more than 900 million users, but the adverts have been found to be far less effective than most companies would like.

General Motors has said that it is pulling its Facebook advertising budget, around £10 million annually, as it is not delivering a good enough return.

Facebook advertising engagement

A survey by marketing agency Greenlight has suggested that nearly half of all Facebook users would never click on adverts on the site.

“With over 30% of respondents saying they ‘strongly distrust’ Facebook with their personal data, Facebook’s advertising program has an upward struggle,” said Greenlight director Hannah Kimuyu.

It was found that 44% of users never click on Facebook adverts. However, it was noted that those who do found them to be effective and engaging.

“Facebook’s advertising program allows brands to connect with more than 800 million potential customers, through targeting their age, gender, location, and interests, in other words – personal data.”

The challenge for Facebook now is to find a balance between keeping investors happy and keeping its 900 million users, which could be easier said than done.


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