Four out of five Facebook users have never bought a product or service as a result of advertising or comments on the social network site, according to a poll by Reuters/Ipsos.
It’s the latest sign that much more needs to be done to turn its 900 million customer base into advertising revenue.
The online poll also found 34 per cent of Facebook users surveyed were spending less time on the website than six months ago, with only 20 per cent spending more.
The findings underscore investor worries on Facebook’s money-making abilities that have pushed the stock down 29 per cent since its initial public offering last month, reducing its market value by $30 billion to roughly $74 billion.
About 44 per cent of respondents said the market debut, seen by investors as troubled, has made them less favourable toward Facebook, according to the survey. In the poll of 1,032 Americans carried out between May 31st and June 4th, 21 per cent said they had no Facebook account.
Not everyone is convinced the firm has figured out how to translate its popularity into a business justifying its lofty valuation. Last month, General Motors, the third largest advertiser in the US, said it would stop paid advertising on the site. – (Reuters)
