DISSED: Advertisers Rip Facebook’s Efficacy

Four out of five Facebook (NASDAQ:FB) users have never bought a product or service that had been advertised or commented upon on the site, according to a recent Reuters/Ipsos online poll, proof that Facebook advertising is still not raking in the dollars it should, and giving credence to the the highly publicized decision by General Motors (NYSE:GM) last month to stop advertising on the social network.

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“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 said, referring to the firm’s February study which suggested that Facebook was not as effective as email or direct-mail marketing in converting people to purchasers.

In other findings, 34 percent of users were found to be spending less time on the Facebook site, whereas only 20 percent were spending more than before. However, about two out of five people still said they used Facebook everyday, and half said their time spent on the site was the same as six months ago.

The IPO succeeded in turning about 44 percent of the respondents negative on Facebook, and about 46 percent said they started looking at stock marketing unfavorably.

On a look at the age profiles of users, the poll revealed that those aged between 18 to 34 were the most frequent users, and of these, 60 percent used the site every day. Among people aged over 55 years, about 29 percent used the site daily.

“Boring” was the reason cited by about 34 percent users who had started to spend less time on Facebook.

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