Facebook Study

Facebook Inc. (NASDAQ:FB) just announced their initial public offering today and many people are still speculating that the company is not worth as much as the company claims. It was just confirmed that they set their IPO at $38 per share and plan on raising $16 billion up to $18.4 billion.

Earlier this week General Motors announced that they were removing their advertisements on Facebook. The automotive giant reportedly spent $10 million on advertising but all that money spent didn’t give them the results they wanted. More recently, Greenlight marketing agency revealed that almost half of all Facebook users never click on sponsored advertisements.

The study reports that 44% of Facebook users polled never click on sponsored ads or other featured advertisements, three percent of the website’s users admit to regularly clicking on ads, and 10 percent claimed that they click on ads frequently.

On another note, 30% of all Facebook users say they don’t trust the website’s policy of privacy with personal data.

Hannah Kimuyu (director for Greenlight) says that since people don’t trust the social media giant’s practices in handling personal data, it’s going to cause an upward struggle for the company. Facebook’s advertising strategy utilizes their users personal data including age, gender, interests, and location.

This news is really not surprising. As a Facebook user, I hardly ever click on the advertisements and I doubt most people do. The fact is: most people don’t go on to Facebook to look at advertisements or to shop, most people go on to connect with their friends and family. I like Facebook and I would love to see them succeed but I truly think they might want to reconsider their advertising plan. Now that Facebook has announced their IPO, it’s probably time to them to come up with fresh ideas or new plans to help them stay on top and make more money. The business world is constantly changing and Facebook needs to stay on top of that to ensure their relevance.