Social Networkers Threaten To Ditch Facebook If It Chooses Advertisers Over Users
New research from www.utalkmarketing.com today has a stark warning to online networking site Facebook: let advertisers take over at your peril or users will leave in their droves.
(PRWEB) October 29, 2007 -- New research from Facebook: let advertisers take over at your peril or users will leave in their droves.
The marketing website quizzed 1,000 people on their attitudes to the presence of advertisers on Facebook and their sentiment is clear. When asked ‘If Facebook becomes more commercialized 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’.
Utalkmarketing.com founder Niall McKinney said: “This research demonstrates that Facebook and other social networking sites have to tread very carefully where advertising is concerned. People treat their Facebook pages as their personal space and don’t like it to be invaded. The recent hefty valuations of Facebook must be called into question by this consumer attitude.”
Please contact Aimi McNeill on 0207 300 73333 or 07766 826704 for more information
Notes to Editors:
The research was carried out on behalf of http://www.utalkmarketing.com/and polled 1,000 Facebook users. A full breakdown of data is available on request.
Utalkmarketing.com launched in January 2007 by Niall McKinney and currently has 85,000 unique users per month. It is the first trade website for marketers to be based around user generated content and also features the latest marketing case studies, jobs, advise and advertising.
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