New research from UTalkMarketing.com released today delivers a stark warning to online networking site Facebook: let advertisers take over at your peril or users will leave in their droves.
We quizzed 1000 people on their attitudes to the presence of advertisers on Facebook and their sentiment is clear.
When asked ‘If Facebook becomes more commercialised with advertising or sponsorship, would you be less likely to use it?’ a staggering 40 per cent declared they would definitely use it less.
For a site that boasts 39 million users worldwide, Facebook could potentially risk losing 16 million consumers globally.
The research also casts doubt on the recent valuation of the company at $15 billion when Microsoft bought shares last week. Experts now question how Facebook will be able to monetize its mass audience if it cannot increase the level of advertising.
Furthermore it would appear that social networkers are very protective of their online territory – with over a third (36 per cent) of Facebook users insisting “it is inappropriate for brands to be involved in social networking sites” at all.
Similarly, the research carries a similar caution to advertisers. Rather than create a positive impression with a younger generation of influential consumers it has the opposite effect - with some 20 per cent of Facebook users saying they would look ‘unfavourably’ on a brand who sponsor it or create commercial applications.
Additionally, advertisers could be wasting their money as a whopping 44 per cent, almost half of all quizzed, declared ‘none of the adverts featured on the site made me want to use the product or service advertised’.
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